Gilead Sciences (NASDAQ:GILD) inks a 10-year agreement with Arcus Biosciences (NYSE:RCUS) aimed at co-developing and co-commercializing the latter’s pipeline of cancer candidates.
Under the terms of the deal, RCUS will receive
$175M upfront plus a $200M equity investment (at $33.54/share) from
GILD, up to $1.225B in opt-in and milestone payments and tiered
high-teens-to-low-twenties royalties on GILD-licensed products ex-U.S.
GILD will receive immediate rights to zimberelimab
and opt-in rights to all other RCUS candidates, including AB154, AB928
and AB680, contingent on the payment of fees ranging from $200M – 275M
per program (after delivery of a qualifying data package from RCUS).
If GILD elects to in-license AB154, then RCUS will
be eligible to receive up to $500M in regulatory approval milestones.
It will have the right to opt in to all other programs upon paying $150M
per program after RCUS delivers the respective qualifying data package.
If GILD exercises its option on a particular
program, the parties will co-develop and share global development costs
and will co-commercialize and share profits in the U.S. (unless RCUS
opts out). GILD will own exclusive commercialization rights ex-U.S.
GILD will provide up to $400M in R&D support
to RCUS over the contract term and will have the right to appoint two
people to RCUS’s board.
The transaction should close next quarter.
RCUS hosted a conference call this morning at 8:00 am ET to discuss the partnership.
https://seekingalpha.com/news/3577826-gilead-teams-up-arcus-biosciences-in-cancer
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