Gilead Sciences Enters Partnership with LEO Pharma to Develop Inflammatory Disease Treatments
Gilead Sciences, a biopharmaceutical company, has entered into a partnership with Denmark’s LEO Pharma to develop programs to treat patients with inflammatory diseases. Under the agreement, LEO Pharma will be eligible to receive up to $1.7 billion in payments, including an upfront payment of $250 million from Gilead. In return, Gilead will have global rights to develop, manufacture, and commercialize the small molecule oral STAT6 program.
The STAT6 program has shown potential in preclinical studies to treat a broad population of patients with inflammatory conditions such as atopic dermatitis, asthma, and chronic obstructive pulmonary disease (COPD). LEO Pharma may receive tiered royalties ranging from high single-digit to mid-teens on sales of topical STAT6 products.
The partnership is expected to reduce Gilead’s 2025 earnings per share by approximately $0.15 to $0.17. Flavius Martin, executive vice president of research at Gilead Sciences, stated, “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.”
