Gilead Strikes $1.7B Deal with LEO Pharma for Oral STAT6 Therapies in Inflammatory Diseases

Gilead Sciences has announced a $1.7 billion collaboration with LEO Pharma, expanding its portfolio beyond infectious diseases and into inflammatory conditions. The partnership focuses on developing oral STAT6 small-molecule inhibitors and targeted protein degraders. STAT6 is a transcription factor involved in IL-4 and IL-13 cytokine signaling, pathways implicated in diseases such as eczema, asthma, and COPD.

Under the terms, Gilead will take the lead on oral formulations, while LEO Pharma will handle topical applications. Gilead is providing an upfront payment of $250 million as part of the total $1.7 billion deal, which includes potential milestone payments and royalties. If successful, this collaboration could provide an oral treatment alternative to injectable biologics.

See also: The Explosion of Therapeutic Modalities: Small Molecules, Biologics, and Everything in Between

This deal aligns with Gilead's broader strategic pivot into inflammation, following its FDA approval of Livdelzi in 2024 for primary biliary cholangitis. For LEO Pharma, known for dermatology products and partnerships with companies like AstraZeneca and Argenx, the agreement marks an opportunity to further its STAT6 research and extend its market reach.

LEO Pharma, headquartered in Ballerup, Denmark, is a pharmaceutical company with over 115 years of experience in drug discovery and development, primarily focused on addressing unmet needs in medical dermatology. The company specializes in treatments for skin diseases such as psoriasis, atopic dermatitis, chronic hand eczema, and rare conditions like congenital ichthyoses. Serving more than 95 million patients annually, LEO Pharma invests heavily in research and development, allocating 13% of its turnover to advance innovative solutions. The company's pipeline integrates topical, oral, and injectable treatments targeting hard-to-treat skin diseases, developed through in-house expertise and external collaborations.

LEO Pharma 2024 pipeline (Source: LEO Pharma)

Cover photo: LEO Pharma

Topics: Startups & Deals