06:53 AM EST, 01/13/2025 (MT Newswires) -- Gilead Sciences ( GILD ) is acquiring LEO Pharma's STAT6 program for the potential treatment of patients with inflammatory diseases for up to $1.7 billion, including an upfront payment of $250 million, as part of a partnership agreement, the companies said Saturday.

Under the terms of the deal, Gilead will acquire LEO Pharma's STAT6 small molecule inhibitors and targeted protein degraders and lead development efforts for oral products, while LEO Pharma will lead development for potential topical applications.

In addition to the payments, LEO Pharma may also receive tiered royalties of high single-digit to mid-teens on sales of oral STAT6 products while Gilead may receive similar tiered royalties on sales of topical STAT6 products.

The transaction with LEO Pharma is expected to reduce Gilead's GAAP and non-GAAP 2025 EPS by about $0.15 to $0.17, the companies said.