Gilead Partners With Assembly Biosciences To Accelerate Development Of Antiviral Therapeutics

(RTTNews) - Gilead Sciences, Inc. (GILD) and Assembly Biosciences, Inc. (ASMB) have entered into a 12-year partnership to advance the research and development of antiviral therapies, with an initial focus in Assembly Bio's established areas of herpesviruses, hepatitis B virus and hepatitis D virus.

Assembly Bio will receive $100 million, consisting of an $84.8 million upfront payment and a $15.2 million equity investment from Gilead. The initial equity investment at a premium represents 19.9 percent of the outstanding voting stock of Assembly Bio. Subject to certain conditions, Gilead has agreed to purchase up to 29.9 percent of Assembly Bio's outstanding voting stock at a premium. Gilead has the right to appoint two individuals to Assembly Bio's Board.

Under the terms of the agreement, Gilead may opt-in to obtain exclusive rights for each of Assembly Bio's current and future programs, including two preclinical programs targeting HSV and transplant-associated herpesviruses that Gilead is licensing to Assembly Bio, upon payment of an opt-in fee of at least $45 million per program after clinical proof-of-concept is achieved. If Gilead opts-in to any program under the collaboration, Assembly Bio is eligible to receive up to $330 million per program in potential regulatory and commercial milestones, in addition to royalties ranging from the high single digits to high teens.

Gilead noted that, beginning in the first quarter of 2022, it no longer excludes acquired IPR&D expenses from its non-GAAP financial measures. The transaction with Assembly Bio is expected to reduce Gilead's GAAP and non-GAAP 2023 EPS by approximately $0.05 - $0.07.

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