Gilead Sciences Inc. (GILD) revealed today a significant 12-year collaboration with Assembly Biosciences Inc. (ASMB) to jointly develop antiviral therapies, particularly for hepatitis B virus (HBV) and hepatitis D virus (HDV). Under this partnership, Gilead will provide Assembly with $100 million, consisting of an $84.8 million upfront payment and a $15.2 million equity investment. Assembly’s trading activity has been temporarily halted pending the news announcement, while Gilead’s shares remain inactive. The equity investment from Gilead equates to a 19.9% ownership stake in Assembly’s voting stock. In addition, Gilead has also agreed to a premium purchase of up to 29.9% of Assembly’s voting stock.
Furthermore, Assembly stands to earn a potential $330 million in regulatory and commercial milestones, as well as three separate collaboration extension payments amounting to $75 million each. Moreover, Gilead retains the right to nominate two individuals to join Assembly’s board of directors. Over the past three months, Assembly’s stock has experienced a decline of 35.8%, while Gilead’s shares have shown an increase of 2.2%. In comparison, the S&P 500 index (SPX) has recorded a decrease of 3.3%.
This partnership between Gilead Sciences Inc. and Assembly Biosciences Inc. signifies a major step towards the advancement of antiviral therapies for hepatitis B and hepatitis D viruses.