Dan O'Day, Gilead CEO (Andrew Harnik, AP Images)

Gilead leas­es part­ner rights to TIG­IT, PD-1 in a $2B deal with Ar­cus. Now comes the hard part

Gilead CEO Dan O’Day has bro­kered his way to a PD-1 and lined up a front row seat in the TIG­IT are­na, ink­ing a deal worth close to $2 bil­lion to align the big biotech close­ly with Ter­ry Rosen’s Ar­cus. And $375 mil­lion of that comes up­front, with cash for the buy-in plus eq­ui­ty, along with $400 mil­lion for R&D and $1.22 bil­lion in re­serve to cov­er opt-in pay­ments and mile­stones..

Hot­ly ru­mored for weeks, the 2 play­ers have for­mal­ized a 10-year al­liance that starts with rights to the PD-1, zim­bere­limab. O’Day al­so has first dibs on TIG­IT and 2 oth­er lead­ing pro­grams, agree­ing to an opt-in fee rang­ing from $200 mil­lion to $275 mil­lion on each. There’s $500 mil­lion in po­ten­tial TIG­IT mile­stones on US reg­u­la­to­ry events — like­ly capped by an ap­proval — if Gilead part­ners on it and the stars align on the da­ta. And there’s an­oth­er $150 mil­lion opt-in pay­ments for the rest of the Ar­cus pipeline.

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