Gilead to Pay $1.3B for Oral Peptide That Could Rival J&J’s New Immunology Pill

Roche expanded its ADC partnership with Hansoh Pharma, with a deal potentially worth over $15B. Merck KGaA agreed to acquire Silence Therapeutics for $1.3B, gaining a rare blood cancer therapy and RNA tech. Retail sentiment on Stocktwits was neutral for Gilead and bullish for Merck KGaA, Silence Therapeutics, and others.

Gilead Sciences will pay $45 million to settle a Texas lawsuit alleging improper Medicaid prescription incentives. The state claimed the company offered free nursing services and reimbursement assistance to promote its drugs. Gilead denies wrongdoing but settled to avoid litigation costs. The agreement follows a similar settlement with AstraZeneca earlier this year.

Gilead Sciences' BIC/LEN regimen showed similar adverse event rates to comparator regimens in HIV patients with comorbidities like dyslipidemia, hypertension, or diabetes. 48-week trials found stable metabolic outcomes, including lipids, glucose, and weight. The once-daily single-tablet combines bictegravir and lenacapavir, with low discontinuation rates due to adverse events.

Gilead will acquire PepStar Therapeutics' oral IL-23R inhibitor program, including HCXT-2001, for $1.275bn. The deal, expected to close in Q4 2026, will reduce Gilead's EPS by $0.79 to $0.83 in that quarter. Gilead plans to evaluate HCXT-2001 for IBD and psoriasis, alone or with emvistegrast.

Gilead Sciences acquired global rights to PepStar Therapeutics' oral IL-23 receptor inhibitor for $1.28bn, aiming to rival Johnson & Johnson's Icotyde. The lead asset, HCXT-2001, is in Phase I trials and targets inflammatory bowel disease. Gilead's CMO highlights its potential for differentiation. Jefferies analysts view the deal positively, suggesting HCXT-2001 could offer clinical benefits in combination with Gilead's emvistegrast.

Jefferies raised Gilead Sciences' (GILD) price target to $185, citing the acquisition of PepStar Therapeutics' HCXT-2001 for $1.275B. The stock is near its 52-week high. Gilead's upcoming earnings on October 29 are anticipated. BofA Securities also raised its target, citing positive drug trial results.