07:45 AM EST, 12/03/2024 (MT Newswires) -- Gilead Sciences ( GILD ) said Tuesday it has entered into an exclusive option and license agreement with Tubulis to discover and develop an antibody-drug conjugate, or ADC against a solid tumor target.

Gilead will receive access to Tubulis' Tubutecan and Alco5 platforms to design a Topoisomerase I inhibitor-based ADC, the company said.

Under the terms, Gilead will pay Tubulis an upfront payment of $20 million, with the potential for up to $415 million in development and commercialization milestone payments, as well as mid-single to low-double-digit tiered royalties on sales of products developed through the collaboration.

If Gilead exercises its option, it will also pay a $30 million exercise fee and take on the responsibility for further development and commercialization.

Gilead expects the deal to impact its GAAP and non-GAAP 2024 EPS by around $0.01.