Gilead Signs a Ten Years Agreement with Arcus to Co-Develop and Co-Commercialize Next-Generation Cancer Immunotherapies

Shots:

• Arcus to receive $375M including $175M up front & $200M as equity investment at a price of $33.54/ share with a premium of 35% and is eligible to receive $1.225B as in opt-in and milestones concerning its current clinical product candidates.  Gilead will support the ongoing research and development by paying $400M during the collaboration while the transaction is expected to be closed in Q3’20
• Gilead will get access to Arcus’ immuno-oncology products including rights to zimberelimab, as well as the right to opt-in to all other current Arcus’ clinical candidates, that include AB154, AB928 and AB680, upon payment of an opt-in fee as $200M-$275M/ program.  If Gilead opts-in to the AB154, Arcus is eligible to receive up to $500M on US approval
• Gilead will receive the right to opt-in to all other programs emerges from Arcus’s research portfolio over the next 10yrs. with an opt-in fee of $150M/program. Following exercises, the option, the companies will co-develop & share global development costs, will co-commercialize & share profits in the US. In addition to all other rights, Gilead will get exclusive rights to commercialize any optioned programs outside of the US in exchange of royalties

Click here ­to­ read full press release/ article | Ref: Gilead | Image: Bloomberg