Gilead Partners with Xilio Therapeutics for Novel Tumor-Activated IL-12 Program

1. Gilead Sciences and Xilio Therapeutics have signed an exclusive licensing agreement to develop and commercialize Xilio's tumor-activated interleukin-12 (IL-12), specifically XTX301, aiming to treat various solid tumors.
2. Xilio will receive an upfront payment of $43.5 million, consisting of $30 million in cash and a $13.5 million equity investment in common stock from Gilead.
3. Xilio stands to gain up to $604 million based on specified development, regulatory, and sales-based milestones, along with potential additional equity investments and a development milestone payment.
4. Xlio's novel tumor-activation platform seeks to enhance the therapeutic potential of IL-12 while minimizing peripheral immune activation and subsequent toxicities.
5. XTX301 features a systemic delivery mechanism designed to activate exclusively within the tumor microenvironment, potentially improving the therapeutic index for IL-12 treatment.
6. Xilio will continue to lead the Phase I clinical trial of XTX301, with Gilead having the option to transition development responsibilities after receiving specific clinical data from Xilio upon payment of $75 million.
7. The agreement represents Gilead's entry into an area where other companies have previously exited due to challenges in developing effective IL-12 therapies.
8. Xilio has also decided to focus on its CTLA-4 candidate (XTX101) and explore strategic opportunities for further development of its IL-2 molecule (XTX202) in combination treatments, following promising phase 2 data.