Gilead to buy 29.9% of Assembly voting stock in $100M pact

Gilead Sciences (GILD) and Assembly Biosciences, Inc. (ASMB) announced that the companies have entered into a 12-year partnership to advance the research and development of novel antiviral therapies, with an initial focus in Assembly Bio’s established areas of herpesviruses, hepatitis B virus HBV and hepatitis D virus HDV . Assembly Bio’s current portfolio of small molecule antiviral therapeutics includes both clinical and preclinical programs, including next-generation core inhibitor ABI-4334 for the treatment of HBV, long-acting helicase-primase inhibitor ABI-5366 for herpes simplex virus , an orally bioavailable HDV entry inhibitor ABI-6250, and a pan-herpes polymerase inhibitor program…Under the terms of the agreement, Assembly Bio will receive $100M, consisting of an $84.8M upfront payment and a $15.2M equity investment from Gilead. Gilead’s initial equity investment at a premium represents 19.9 percent of the outstanding voting stock of Assembly Bio as of the date of closing. In addition, subject to certain conditions, Gilead has agreed to purchase up to 29.9% of Assembly Bio’s outstanding voting stock at a premium. ..Following Gilead’s exercise of its option for an Assembly Bio program, Assembly Bio will have the right to opt-in to share profits and costs in the United States. For future new programs, Assembly Bio will also have an option to co-promote those products in the United States.