By Will Feuer


Gilead Sciences and Dutch biotechnology company Merus said they have struck a research collaboration, option and license deal to discover novel dual tumor-associated antigens targeting trispecific antibodies.

The companies said they will use Merus' proprietary Triclonics platform along with Gilead's oncology expertise to develop multiple, separate preclinical research programs.

Merus, which will lead early-stage research activities for two programs with an option to pursue a third, will get an upfront cash payment of $56 million for initial targets. Gilead will also buy $25 million worth of Merus shares.

Across all potential programs, Merus is eligible to receive up to $1.5 billion including additional near term and option payments, potential development and commercialization milestones, as well as tiered royalties if Gilead commercializes any therapies from the research.

Gilead will have the right to license programs developed under the collaboration after the completion of select research activities.

Gilead said the deal will likely reduce its adjusted and non-adjusted 2024 earnings by 3 cents a share to 5 cents a share.

"We have seen the successful application of bispecific antibodies as an immune-modulating modality used to treat cancer," said Flavius Martin, executive vice president of research at Gilead. "We are now looking ahead to the development of additional multispecific antibodies capable of driving robust anti-tumor immune responses with an improved efficacy and safety profile."


Write to Will Feuer at Will.Feuer@wsj.com


(END) Dow Jones Newswires

03-06-24 0838ET