Gilead Sciences Expands into Inflammatory Diseases with $1.7 Billion Collaboration with LEO Pharma

Deal Value:
Gilead Sciences has entered a $1.7 billion collaboration with LEO Pharma to develop oral STAT6 small-molecule inhibitors and targeted protein degraders for inflammatory diseases13.

Partnership Structure:
Gilead will lead on oral formulations, while LEO Pharma will handle topical applications. The deal includes an upfront payment of $250 million, potential milestone payments, and royalties13.

Strategic Pivot:
This collaboration marks Gilead's strategic expansion into inflammation, following its FDA approval of Livdelzi in 2024 for primary biliary cholangitis1.

LEO Pharma Background:
LEO Pharma is a pharmaceutical company with over 115 years of experience, primarily focused on medical dermatology. The company invests heavily in R&D, allocating 13% of its turnover to innovative solutions1.

Market Impact:
The deal could provide an oral treatment alternative to injectable biologics for diseases such as eczema, asthma, and COPD13.

JPM25 Announcement:
The deal was announced during JPM25, highlighting Gilead's continued diversification into new therapeutic areas beyond infectious diseases24.

Sources:

1. https://www.biopharmatrend.com/post/1108-gilead-strikes-17b-deal-with-leo-pharma-for-oral-stat6-therapies-in-inflammatory-diseases/

2. https://sfbn.org/san-francisco-biotech-news/2025/01/11/gilead-roars-into-jpm25-inking-1-7b-inflammation-deal-with-leo-pharma/

3. https://endpts.com/gilead-taps-into-stat6-space-via-250m-deal-with-leo-pharma/

4. https://www.fiercebiotech.com/biotech/jpm25-day-1-fierce-biotech-daily-roundup