Gilead Sciences, Gritstone Aim to Develop HIV-Specific Therapeutic Vaccine

By Colin Kellaher

Gilead Sciences Inc. and Gritstone Oncology Inc. Monday said they will work together to develop a vaccine-based immunotherapy as part of Gilead's efforts to find a curative treatment for human immunodeficiency virus infection.

The deal, potentially worth more than $800 million to Gritstone, sent shares of the Emeryville, Calif., clinical-stage biotechnology company soaring in premarket trading.

The companies said they plan to develop an HIV-specific therapeutic vaccine using Gritstone's proprietary prime-boost vaccine platform, comprised of self-amplifying mRNA and adenoviral vectors, with antigens developed by Gilead.

Gilead, a Foster City, Calif., biopharmaceutical company, said it will make a $60 million payment to Gritstone at closing, including $30 million in upfront cash payment and a $30 million equity investment at a premium.

The companies said Gilead will be responsible for conducting a Phase 1 study for the HIV-specific therapeutic vaccine and will have an option to obtain an exclusive license to develop and commercialize the vaccine beyond Phase 1.

Gritstone is eligible to receive up to an additional $725 million if the option is exercised and certain milestones are met, along with royalties on sales.

Shares of Gritstone, which closed Friday at $18.10, were up 48% to $26.80 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

February 01, 2021 06:39 ET (11:39 GMT)

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