Gilead Sciences Broadens Scope with $1.7 Billion Partnership with Leo Pharma

Gilead Sciences is further extending its reach beyond its roots in infectious diseases, with a notable foray into oncology and, more recently, a deeper investment in inflammation research. This strategic expansion is marked by a substantial $1.7 billion agreement with dermatology-focused company Leo Pharma, announced ahead of the J.P. Morgan Healthcare Conference.
The collaboration centers on Leo Pharma’s preclinical research programs targeting STAT6, a transcription factor integral to IL-4 and IL-13 cytokine signaling. These signaling pathways are key in multiple inflammatory conditions, including eczema, asthma, and chronic obstructive pulmonary disease (COPD). While Gilead has not specified which diseases it plans to prioritize, the targeted pathways are associated with blockbuster treatments like AbbVie’s Skyrizi and Rinvoq and Sanofi and Regeneron’s Dupixent.

To secure this partnership, Gilead is committing an upfront payment of $250 million, with the potential for up to $1.7 billion in total, including milestone payments and sales bonuses contingent on the successful development and approval of therapies. The agreement grants Gilead access to Leo Pharma’s oral STAT6 small-molecule inhibitors and targeted protein degraders. Gilead will spearhead the oral drug programs, while Leo Pharma will focus on topical applications of the inhibitors.
Leo Pharma brings a wealth of expertise in dermatology, with a range of marketed treatments for conditions like eczema and a robust pipeline of investigational drugs spanning early to late stages. Collaborations with major pharmaceutical companies, including AstraZeneca and Argenx, further underscore Leo’s prominence in the field.
Since its establishment in 1987 as a company dedicated to addressing HIV/AIDS, Gilead has progressively diversified its portfolio. It expanded into hepatitis treatments and later ventured into oncology with varying degrees of success. Inflammation has become an increasingly prominent focus, exemplified by the 2023 FDA approval of Livdelzi, its first drug for primary biliary cholangitis.
Flavius Martin, M.D., Gilead’s executive vice president of research, emphasized the company’s dedication to advancing innovative therapies for inflammatory diseases. He stated, “As we continue to expand our inflammation portfolio, we’re committed to developing next-generation therapies to support long-term remission in patients with inflammatory diseases through mechanisms that block major pathogenic pathways, eliminate pathogenic cells, tolerize the immune system, and restore cell function. By partnering with Leo Pharma, we hope to explore the potential of the STAT6 pathway to bring forward an oral option for patients suffering from chronic inflammatory conditions.”

The potential of the STAT6 pathway to address chronic inflammatory diseases aligns with the company’s long-term goal of delivering transformative treatments. For Leo Pharma, the collaboration represents an opportunity to further its mission of advancing dermatological care while leveraging Gilead’s resources and expertise in systemic therapies.