Gilead Sciences has signed a 10-year collaboration deal worth up to $1.97bn with Arcus Biosciences to co-develop and co-commercialise the current and future cancer therapeutic product candidates in the latter's pipeline.
As per the terms of the deal, Arcus Biosciences, which is a California-based oncology-focused biopharma company, will get a payment of $375m upon closing from Gilead Sciences. This will be made up of an upfront payment of $175m and an equity investment of $200m.
Furthermore, the biopharma company will stand to receive up to $1.22bn in opt-in and milestone payments pertaining to its current clinical product candidates. In return, Gilead Sciences will get access to the company’s current and future investigational immuno-oncology products.
Gilead Sciences chairman and CEO Daniel O’Day said: “Gilead is committed to accessing the world’s best innovation in immuno-oncology and our agreement with Arcus further demonstrates that commitment.
“By gaining access to its broad, diverse pipeline and Arcus’s clear strengths in discovery and development, we believe that our partnership with Arcus will significantly accelerate our progress in developing transformative new therapies for cancer.”
Currently, Arcus Biosciences has a clinical-stage pipeline consisting four immuno-oncology programmes along with an active oncology discovery pipeline having six preclinical compounds that are said to target critical biological pathways.
Gilead Sciences will get immediate rights to zimberelimab as per the deal, and also the right to opt-in to all other current Arcus Biosciences’ clinical candidates that include AB154, AB928, and AB680. This will be after a payment of an opt-in fee in the range of $200m-$275m per programme, after delivery of a qualifying data package.
If Gilead Sciences selects the AB154 programme as well, then the California-based firm will eligible to be paid up to $500m in potential future regulatory approval milestones in the US.
Gilead Sciences will hold the right to opt-in to all other programmes emerging from Arcus Biosciences’ research portfolio during the next 10 years, following payment of an opt-in fee of $150m per programme after the latter’s delivery of a qualifying data package.
Arcus Biosciences CEO Terry Rosen said: “This collaboration will allow us to act as one team to maximize the clinical and commercial potential of Arcus’s therapeutic development candidates, greatly amplifying and expediting the opportunities in our pipeline and discovery programs.
“At the same time, this partnership structure facilitates Arcus’s path to becoming an independent, fully integrated biopharmaceutical company.”