Gilead Sciences and Leo Pharma have entered into a strategic partnership to accelerate the development and commercialisation of Leo Pharma’s small molecule oral STAT6 (signal transducer and activator of transcription 6) programmes for the potential treatment of patients with inflammatory diseases.

Gilead will lead the development efforts of the oral programmes, whilst Leo Pharma will undertake the development of potential topical formulations of Stat6 inhibitors. As part of the agreement, Leo Pharma may receive up to $1.7 billion in total, with an initial payment of $250 million inclusive. Any sales of the oral candidate will also result in the payment of tiered royalties to Leo, while Gilead may receive such payments for sales of the topical Stat6 products.