EVOQ to potentially receive $658.5M in Gilead collaboration on immunotherapies

Gilead Sciences, Inc. (GILD) and EVOQ Therapeutics (EVOQ) announced a collaboration and licensing agreement to advance EVOQ’s proprietary technology for the treatment of rheumatoid arthritis RA and lupus. EVOQ’s NanoDisc technology is designed to enable lymph-targeted delivery of disease-specific antigens and has the potential to change the paradigm for the treatment of autoimmune diseases. Under the agreement, Gilead and EVOQ will collaborate on preclinical development. Gilead has the option to exclusively license rights to EVOQ’s NanoDisc technology to pursue product candidates for RA and lupus indications and will be responsible for clinical development and commercialization. Beginning in the first quarter of 2022, consistent with recent industry communications from the U.S. Securities and Exchange Commission , Gilead no longer excludes acquired IPR&D expenses from its non-GAAP financial measures. The transaction with EVOQ is expected to have a de minimis financial impact on Gilead’s GAAP and non-GAAP EPS. Under the terms of the agreement, EVOQ could potentially receive up to $658.5M total in upfront, option exercise and milestone payments across all programs, as well as tiered royalties on product sales.