Gilead Sciences has entered into a definitive agreement to acquire an oral IL-23 receptor inhibitor program, including lead asset HCXT-2001, from PepStar Therapeutics Limited for $1.275 billion in upfront cash.
The transaction will give Gilead worldwide rights to HCXT-2001 and the broader IL-23R inhibitor program, expanding the company’s inflammation and immunology pipeline with a clinical-stage oral therapy being evaluated for immune-mediated inflammatory diseases.
HCXT-2001 is an investigational oral macrocyclic peptide inhibitor of IL-23R with an extended half-life. The drug is currently in Phase 1 clinical trials and is being developed as a potentially differentiated approach to inhibiting the IL-23 pathway.
IL-23R is a clinically validated target across several immune-mediated inflammatory diseases, including inflammatory bowel disease, or IBD, with potential applications in psoriasis. Gilead sees opportunities to develop HCXT-2001 as a monotherapy as well as in combination with other programs in its pipeline.
The company specifically highlighted the potential to combine HCXT-2001 with emvistegrast as a once-daily oral treatment approach for people living with IBD.
The acquisition is part of Gilead’s broader effort to expand its inflammation portfolio through multiple mechanisms and treatment modalities. The company is focusing on areas including inflammatory bowel disease, type 2 inflammatory diseases, lupus, and B cell-mediated autoimmune diseases.
Gilead said its strategy is designed to create flexibility across both standalone therapies and future combinations that target underlying drivers of chronic inflammatory disease.
Under the agreement, Gilead will pay PepStar $1.275 billion in upfront cash consideration, subject to customary adjustments. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions.
Gilead expects the acquisition to reduce both GAAP and non-GAAP earnings per share by approximately $0.79 to $0.83 during the fourth quarter of 2026.
Lazard is serving as exclusive financial advisor to Gilead, while Centerview Partners is serving as exclusive financial advisor to PepStar. Covington & Burling and Mayer Brown are serving as legal counsel to Gilead. Sidley Austin is representing PepStar, while Wilson Sonsini Goodrich & Rosati is serving as patent counsel to PepStar.
KEY QUOTES:
“HCXT-2001 adds a potentially differentiated oral approach to our growing inflammation pipeline, reflecting our commitment to addressing significant unmet patient needs. We see potential for HCXT-2001 alone or in combination, including with emvistegrast, as a daily oral treatment for people living with IBD.”
Dietmar Berger, MD, PhD, Chief Medical Officer Of Gilead
“We are excited for Gilead to take HCXT-2001 forward and believe their scientific expertise and global development capabilities can help realize the full potential of this novel oral IL-23R inhibitor. This transaction marks a major milestone for our company and underscores the strength of our proprietary oral peptide platform. I feel incredibly proud of what our team has accomplished in just three years and excited about what lies ahead as we continue bringing innovative medicines to patients around the world.”
Haibing Guo, Founder And CEO Of PepStar Therapeutics
