Gilead Sciences to Acquire 49.9% Stake in Pionyr Immunotherapeutics | Financial Buzz

Gilead Sciences to Acquire 49.9% Stake in Pionyr Immunotherapeutics

Gilead Sciences, Inc. (NASDAQ: GILD) reported that the company will acquire 49.9% stake in Pionyr Immunotherapeutics Inc. for USD 275 Million.  The company retains an exclusive option to purchase the remainder of Pionyr.  Piony’s shareholders will receive up to an additional USD 1.47 Billion in option exercise fees and future payments.  “Pionyr is pursuing promising, novel biology in the field of immuno-oncology,” said Daniel O’Day, Chairman and Chief Executive Officer, Gilead Sciences. “The agreement represents important progress as we continue to build out Gilead’s presence in immuno-oncology with innovative and complementary approaches. We look forward to seeing the programs advance with the goal of developing new therapies that will improve the treatment of cancer.”

“This agreement underscores the value of our myeloid tuning platform and the potential of our pipeline of antibody therapeutics designed to turbocharge the immune system within the tumor microenvironment,” said Steven P. James, President and Chief Executive Officer, Pionyr. “PY314 and PY159 are first-in-class antibodies designed to remove or reprogram, respectively, the immune suppressive cells in the tumor microenvironment and thereby enhance anti-tumor immunity. We are grateful that Gilead has acknowledged the promise of this transformational approach to potentially benefit patients across a range of solid tumors.”

Pionyr shareholders will receive USD 275 Million when the deal closes.  Gilead will receive 49.9% common stock of Pionyr and may exercise its exclusive option upon completion of the company’s phase 1b studies for PY314 and PY159.  For USD 315 Million, Gilead can execute the option exercise fee and potentially USD 1.15 Billion in future milestone payments.