Gilead strikes US$1.28B PepStar deal in China for oral inflammation drug

CHINA— Gilead Sciences has agreed to pay Shanghai-based PepStar Therapeutics US$1.275 billion upfront for global rights to an experimental oral IL-23 receptor inhibitor, strengthening its inflammatory bowel disease (IBD) pipeline and broadening its options for autoimmune disease treatment.

The deal covers PepStar’s macrocyclic peptide programme, including its lead candidate, HCXT-2001, which is currently in Phase I clinical trials.

Gilead is prioritising IBD development but has not yet specified the indications it intends to pursue.

Gilead targets oral IBD treatments

IL-23 receptor inhibitors have established a role in treating plaque psoriasis, while research into their potential for IBD is advancing.

Gilead is exploring HCXT-2001 as a potential oral treatment that could complement its existing inflammation portfolio, which includes programmes targeting IBD, type 2 inflammatory diseases, lupus and B cell-mediated autoimmune conditions.

According to Gilead chief medical officer Dietmar Berger, HCXT-2001 has an extended half-life that could differentiate it from competing treatments.

“We see potential for HCXT-2001 alone or in combination, including with emvistegrast, as a daily oral treatment for people living with IBD,” Berger said.

Emvistegrast is Gilead’s experimental α4β7 integrin inhibitor, which is in mid-stage development for IBD.

The drug recently met its primary endpoint in patients with ulcerative colitis in the Phase II SWIFT study (NCT06290934), supporting further investigation of the combination approach.

Combination potential draws analyst interest

Jefferies analysts see the licensing agreement as an opportunity for Gilead to develop a combination regimen that targets complementary inflammatory pathways.

They cited proof-of-concept data from ABBV-266, a combination of risankizumab and trosunilimab, as evidence that targeting α4β7 integrin and IL-23 pathways could improve clinical remission rates among patients previously treated with advanced therapies.

The analysts also pointed to preclinical pharmacokinetic findings suggesting HCXT-2001 could offer advantages over Johnson & Johnson’s Icotyde (icotrokinra).

However, these early findings require further clinical evaluation to establish whether the experimental drug offers meaningful benefits over existing treatments.

Gilead expands its pipeline through acquisitions

The PepStar agreement adds to a series of transactions as Gilead seeks to diversify its portfolio ahead of anticipated patent expiries across its virology business.

In 2026, the California-based pharmaceutical company agreed to acquire CAR-T specialist Arcellx for US$7.8 billion.

It also pursued acquisitions valued at up to US$5 billion for antibody-drug conjugate developer Tubulis and US$2.2 billion for Ouro Medicines, a biotechnology company focused on autoimmune T-cell engager therapies.

Gilead has also entered a US$1.9bn licensing agreement with Vir Biotechnology to develop next-generation T-cell engager therapies for solid tumours.

The PepStar deal extends this strategy into oral immunology treatments, giving Gilead another experimental asset to develop alongside its existing biologics and combination programmes.

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