FOSTER CITY (dpa-AFX) - Gilead Sciences, Inc. (GILD) and Xilio Therapeutics, Inc. (XLO) announced an exclusive license agreement on Thursday to collaborate on Xilio's Phase 1 tumor-activated IL-12 program, XTX301.
Under this agreement, Xilio will be granted $43.5 million in upfront payments, comprising a $30 million cash payment and an initial equity investment of $13.5 million by Gilead in Xilio common stock at a premium.
Xilio stands to earn up to $604 million in additional contingent payments, which involve further equity investments by Gilead, a transition fee, and specific development, regulatory, and sales-based milestones.
Xilio will be responsible for overseeing the clinical development of XTX301 in the existing Phase 1 clinical trial through dose expansion.
Upon submission of a defined clinical data package for XTX301 by Xilio, Gilead will have the option to take over the development and commercialization of XTX301, subject to the terms of the agreement and a $75 million payment by Gilead.
Preceding the potential transition fee, Xilio stands to receive further equity investments of up to $29 million and a development milestone payment.
This transaction is projected to decrease Gilead's GAAP and non-GAAP 2024 earnings per share by around $0.03 - $0.04.
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