Gilead agrees $1.275 billion purchase of PepStar's oral inflammation program

Gilead ($GILD) agreed to acquire worldwide rights to PepStar's investigational oral IL-23 receptor inhibitor program, led by HCXT-2001. The agreement calls for $1.275 billion in upfront cash consideration payable at closing, subject to customary adjustments. Completion is expected in the fourth quarter, provided closing conditions are met.

HCXT-2001 is a Phase 1 macrocyclic peptide being developed for inflammatory bowel disease. Gilead sees potential for use alone or in combinations, including with its own emvistegrast program, but clinical efficacy and safety remain unestablished. The acquisition would expand Gilead's inflammation pipeline rather than add an approved commercial product. The company expects the transaction to reduce fourth-quarter GAAP and non-GAAP earnings per share by approximately $0.79 to $0.83.

Sources:

• Business Wire
• Reuters
• Gilead — issuer acquisition announcement