Gilead Sciences, Inc. (NASDAQ:GILD) entered a research and development collaboration with Japan-based biopharmaceutical company, Carna Biosciences Inc.
Both the companies have collaborated to develop and commercialize small molecule compounds in immuno-oncology.
The deal will also allow Gilead to access Carna’s proprietary lipid kinase drug discovery platform. Per the terms, the company will license worldwide rights to develop and commercialize inhibitors against an undisclosed immuno-oncology target from Carna.
In exchange, Carna will receive an upfront payment of $20 million and is eligible to receive up to an additional $450 million in milestone payments. Carna will also receive royalties on future net sales.
Gilead is currently making efforts to build a pipeline in immuno-oncology. In December 2018, it collaborated with Agenus (NASDAQ:AGEN) for the development and commercialization of up to five novel immuno-oncology therapies.
Gilead’s stock has gained 9.5% in the year so far compared with the industry's growth of 4.2%.
Recently, the company collaborated with San Francisco-based Nurix Therapeutics, Inc. to discover, develop and commercialize a pipeline of innovative targeted protein degradation drugs for patients with cancer and other challenging diseases.
Earlier, Gilead also collaborated with Goldfinch Bio, Inc., a biotechnology company focused on developing precision therapies for patients with kidney diseases.
Given the persistent decline in HCV sales, stiff competition from the likes of Glaxo (NYSE:GSK) and pricing pressure in the HIV market, the company is looking to newer avenues to boost the top line. Gilead has made quite a few collaborations, of late, to strengthen and diversify its pipeline.
The company is intending to foray into the inflammation market with late-stage candidate, filgotinib. It has collaborated with big pharma companies like Novo Nordisk (NYSE:NVO) to develop treatments for non-alcoholic steatohepatitis (NASH).
Zacks Rank
Gilead currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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