Gilead Sciences, a leading biotechnology company, has announced a significant stake in Assembly Biosciences as part of a long-term collaboration to advance the development of innovative antiviral therapies. The partnership will initially focus on Assembly’s areas of expertise, including herpesviruses, hepatitis B virus, and hepatitis D virus.
Investment Details
As part of the agreement, Gilead will make an upfront payment of $100 million, including a $15 million investment in Assembly. Gilead is acquiring nearly 13.1 million shares at $1.16 per share, which represents a substantial premium of approximately 60% to Monday’s closing price for Assembly. This investment gives Gilead a 19.9% stake in Assembly’s voting stock, with the option to increase it to 29.9% under specific conditions.
Advantages for Assembly
Under the partnership, Assembly stands to benefit from Gilead’s support in various ways. In exchange for an opt-in fee of at least $45 million per program, Gilead can obtain exclusive rights to Assembly’s current and future programs. Additionally, Assembly has the potential to receive up to $330 million per program in regulatory and commercial milestones, along with royalties on sales.
Market Impact
Trading in Assembly’s shares was halted premarket on Tuesday as the announcement created excitement among investors and experts in the industry.
This collaboration between Gilead Sciences and Assembly Biosciences marks a significant move towards advancing antiviral therapies and holds promising potential for breakthroughs in the field.
