Gilead to Acquire PepStar's Oral Inflammation Drug Program in $1.275B Deal
Key Points
- Gilead will acquire PepStar's HCXT-2001, a clinical-stage oral macrocyclic peptide targeting IL-23R, for $1.275 billion in cash.
- The drug offers a potentially differentiated daily oral approach for IBD and other immune-mediated diseases, alone or combined with emvistegrast.
- The deal is expected to close in the fourth quarter of 2026, with Gilead expecting an earnings-per-share reduction of approximately $0.79 to $0.83 that quarter.
Gilead Sciences has agreed to acquire an investigational oral drug program targeting interleukin-23 receptor (IL-23R) from PepStar Therapeutics for $1.275 billion in cash, expanding its pipeline of potential treatments for chronic inflammatory diseases.
The agreement includes HCXT-2001, a clinical-stage macrocyclic peptide designed to inhibit IL-23R. The investigational drug has an extended half-life and could offer an alternative approach to oral inhibition of the IL-23 pathway, which plays a role in several immune-mediated conditions, including inflammatory bowel disease (IBD) and psoriasis.
Gilead says the acquisition will provide worldwide rights to the program and add another mechanism to its growing inflammation and immunology portfolio. The company is exploring opportunities across selected immune-mediated diseases, with a focus on developing complementary treatments that could be used alone or in combination with other therapies.
“HCXT-2001 adds a potentially differentiated oral approach to our growing inflammation pipeline,” says Dietmar Berger, Gilead’s chief medical officer. He adds that the company sees potential for the drug as a daily oral treatment for IBD, either on its own or in combination with emvistegrast.
PepStar founder and CEO Haibing Guo says the agreement marks a significant milestone for the company and reflects the potential of its proprietary oral peptide platform. He expresses confidence that Gilead’s scientific expertise and global development capabilities could help advance HCXT-2001.
Under the terms of the agreement, Gilead will pay $1.275 billion upfront in cash, subject to customary adjustments. The transaction remains subject to customary closing conditions and is expected to be completed in the fourth quarter of 2026. Gilead anticipates that the deal will reduce both GAAP and non-GAAP earnings per share by approximately $0.79 to $0.83 in that quarter.
The acquisition aligns with Gilead’s broader strategy to build a differentiated portfolio of medicines for chronic inflammatory and autoimmune conditions. Its areas of focus include IBD, type 2 inflammatory diseases, lupus and B cell-mediated autoimmune diseases, with an emphasis on therapies that address underlying disease mechanisms and potentially improve long-term patient outcomes.
For more information, visit www.gilead.com.
Total Page Views: 12
