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Gilead and LEO Pharma Team Up to Accelerate Inflammation Drug Development

AInvestSaturday, Jan 11, 2025 12:44 pm ET
3min read


Gilead Sciences (GILD) and LEO Pharma have announced a strategic partnership to accelerate the development and commercialization of LEO Pharma's small molecule oral STAT6 (signal transducer and activator of transcription 6) programs for the potential treatment of patients with inflammatory diseases. This collaboration brings together two industry leaders, combining their expertise and resources to advance innovative therapies for chronic inflammatory conditions.



STAT6 is a specific transcription factor required for IL-4 and IL-13 cytokine signaling, which are clinically validated targets for Th2 mediated inflammatory conditions such as atopic dermatitis, asthma, and COPD. Targeting STAT6 has shown potential preclinically to treat a broad population of patients and provide an oral alternative to those currently treated with injectable biologics. Under this partnership, Gilead will acquire LEO Pharma's comprehensive preclinical oral STAT6 small molecule inhibitors and targeted protein degraders, and lead further development efforts for the oral programs. LEO Pharma will lead development for potential topical formulations of STAT6 inhibitors.

"As we continue to expand our inflammation portfolio, we're committed to developing next-generation therapies to support long-term remission in patients with inflammatory diseases through mechanisms that block major pathogenic pathways, eliminate pathogenic cells, tolerize the immune system, and restore cell function," said Flavius Martin, M.D., Executive Vice President, Research, Gilead Sciences. "By partnering with LEO Pharma, we hope to explore the potential of the STAT6 pathway to bring forward an oral option for patients suffering from chronic inflammatory conditions."

Christophe Bourdon, CEO of LEO Pharma, added, "STAT6 holds potential for treating various inflammatory diseases, including outside dermatology. This strategic partnership with Gilead will enable us to accelerate the development of the STAT6 program and maximize its potential in dermatology and beyond. This partnership acknowledges LEO Pharma’s scientific capabilities and strengthens our commitment to innovate for people with skin diseases."



Gilead will have global rights to develop, manufacture, and commercialize the small molecule oral STAT6 program, while LEO Pharma will have the option to potentially co-commercialize oral programs for dermatology outside the United States. LEO Pharma will hold exclusive global rights to STAT6 topical formulations in dermatology. LEO Pharma is eligible to receive up to $1.7 billion in total payments, including an upfront payment of $250 million, and may also receive tiered royalties ranging from high single-digit to mid-teens on sales of oral STAT6 products. Gilead may receive tiered royalties ranging from high single-digit to mid-teens on sales of topical STAT6 products.

This partnership aligns with Gilead's broader inflammation portfolio strategy, which aims to develop next-generation therapies to support long-term remission in patients with inflammatory diseases. By acquiring LEO Pharma's comprehensive preclinical oral STAT6 program, Gilead strengthens its inflammation portfolio and gains access to a promising target for treating a broad range of inflammatory conditions. Additionally, this collaboration enables Gilead to explore the potential of the STAT6 pathway in various inflammatory diseases, including those outside dermatology.

In conclusion, the strategic partnership between Gilead Sciences and LEO Pharma is a significant step forward in the development of innovative therapies for chronic inflammatory conditions. By combining their expertise and resources, the two companies aim to accelerate the development and commercialization of LEO Pharma's small molecule oral STAT6 programs, ultimately providing patients with much-needed oral alternatives to injectable biologics.
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