Gilead and EVOQ Therapeutics Announce Collaboration to Advance Immunotherapies

Rhea-AI Summary

Gilead Sciences has entered into a collaboration and licensing agreement with EVOQ Therapeutics to exclusively license EVOQ's NanoDisc technology for the development of immunotherapy products targeting rheumatoid arthritis and lupus. This agreement enables Gilead to pursue clinical development and commercialization of these therapies, with potential payments to EVOQ reaching up to $658.5 million plus royalties. The collaboration aims to address significant unmet needs in autoimmune disease treatment.

Positive

• Collaboration with EVOQ to license innovative NanoDisc technology.
• Potential for up to $658.5 million in payments to EVOQ, indicating strong commitment.
• Addresses significant unmet needs in rheumatoid arthritis and lupus treatment.

Negative

• Transaction expected to have de minimis financial impact on Gilead's GAAP and non-GAAP EPS.

– Gilead Receives Rights to Exclusively License EVOQ’s NanoDisc Technology to Develop and Commercialize Immunotherapy Products for Rheumatoid Arthritis and Lupus –

FOSTER CITY, Calif. & ANN ARBOR, Mich.--(BUSINESS WIRE)-- Gilead Sciences, Inc. (Nasdaq: GILD) and EVOQ Therapeutics, Inc. (EVOQ) today announced a collaboration and licensing agreement to advance EVOQ’s proprietary technology for the treatment of rheumatoid arthritis (RA) and lupus. EVOQ’s NanoDisc technology is designed to enable lymph-targeted delivery of disease-specific antigens and has the potential to change the paradigm for the treatment of autoimmune diseases. Under the agreement, Gilead and EVOQ will collaborate on preclinical development. Gilead has the option to exclusively license rights to EVOQ’s NanoDisc technology to pursue product candidates for RA and lupus indications and will be responsible for clinical development and commercialization.

“Despite key advances over the past two decades, there remains significant unmet need for people living with inflammatory and autoimmune diseases,” said Flavius Martin, MD, Executive Vice President, Research at Gilead. “We are excited to collaborate with EVOQ to further expand our autoimmune pipeline with the goal of addressing the needs of people living with these conditions.”

“Gilead has an incredible track record in therapeutic development and of delivering innovative medicines to people around the world. We look forward to working with the Gilead team to advance new treatment options for RA and lupus patients,” said William Brinkerhoff, CEO at EVOQ.

Beginning in the first quarter of 2022, consistent with recent industry communications from the U.S. Securities and Exchange Commission (SEC), Gilead no longer excludes acquired IPR&D expenses from its non-GAAP financial measures. The transaction with EVOQ is expected to have a de minimis financial impact on Gilead’s GAAP and non-GAAP EPS.

Terms of the Agreement

Under the terms of the agreement, EVOQ could potentially receive up to $658.5 million total in upfront, option exercise and milestone payments across all programs, as well as tiered royalties on product sales.

About EVOQ Therapeutics

EVOQ Therapeutics is advancing a pipeline of disease-specific immune modulators to treat patients afflicted with autoimmune diseases. EVOQ's technology platform utilizes a proprietary NanoDisc that has been optimized to deliver antigens to restore immune tolerance. For more information, please visit www.evoqtherapeutics.com

About Gilead Sciences

Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, cancer, and inflammation. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California.

Gilead Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties, and other factors, including the ability of the parties to complete or implement the collaboration in a timely manner or at all; the risk that Gilead may not realize the potential benefits of this collaboration with EVOQ; difficulties or unanticipated expenses in connection with the collaboration and the potential effects on Gilead’s revenues and earnings; the ability of the parties to initiate, progress or complete clinical trials within currently anticipated timelines or at all, and the possibility of unfavorable results from ongoing or additional trials, including those involving potential therapies developed under the collaboration; the ability of the parties to file applications for regulatory approval or receive regulatory approvals in a timely manner or at all for potential therapies developed under the collaboration, and the risk that any such approvals may be subject to significant limitations on use; the possibility that the parties may make a strategic decision to terminate the collaboration at any time; and any assumptions underlying any of the foregoing. These and other risks, uncertainties and other factors are described in detail in Gilead’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, as filed with the U.S. Securities and Exchange Commission. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The reader is cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation and disclaims any intent to update any such forward-looking statements.

Gilead and the Gilead logo are trademarks of Gilead Sciences, Inc. or its related companies.

For more information about Gilead, please visit the company’s website at www.gilead.com, follow Gilead on Twitter (@GileadSciences) or call Gilead Public Affairs at 1-800-GILEAD-5 or 1-650-574-3000.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230103005023/en/

Gilead Contacts: 

Jacquie Ross, Investors

Investor_Relations@gilead.com

Ashleigh Koss, Media

Public_Affairs@gilead.com

EVOQ Contacts:

Karen Sharma

MacDougall Advisors

Ksharma@macdougall.bio

Source: Gilead Sciences, Inc.

FAQ

What is the licensing agreement between Gilead and EVOQ about?

Gilead has licensed EVOQ's NanoDisc technology to develop and commercialize immunotherapy products for rheumatoid arthritis and lupus.

How much could EVOQ receive from Gilead under this agreement?

EVOQ could receive up to $658.5 million in milestone payments and tiered royalties on product sales.

What potential impact does the collaboration have on Gilead's financials?

The transaction is expected to have a de minimis impact on Gilead's GAAP and non-GAAP EPS.

What is the goal of the collaboration between Gilead and EVOQ?

The collaboration aims to advance treatment options for patients with rheumatoid arthritis and lupus.

When did Gilead announce the collaboration with EVOQ?

Gilead and EVOQ announced their collaboration in a press release on January 3, 2023.