Gilead, Xilio Enter Exclusive License Deal For Phase 1 Tumor-Activated Il-12 Program, XTX301; Deal Includes $43.5M Upfront, Up To $604M In Additional Contingent Payments
Portfolio Pulse from Benzinga Newsdesk
Gilead Sciences, Inc. (GILD) and Xilio Therapeutics (XLO) have entered into an exclusive license agreement for XTX301, a Phase 1 tumor-activated IL-12 program. Gilead will pay Xilio $43.5 million upfront, including $30 million in cash and a $13.5 million equity investment at a premium. Additionally, Xilio could receive up to $604 million in contingent payments based on development, regulatory, and sales milestones. The deal is expected to reduce Gilead's 2024 EPS by $0.03 to $0.04.
March 28, 2024 | 11:04 am
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NEGATIVE IMPACT
Gilead Sciences, Inc. enters a significant licensing agreement with Xilio Therapeutics for XTX301, committing to an upfront payment of $43.5 million and potential future payments up to $604 million. This deal will negatively impact Gilead's 2024 EPS by $0.03 to $0.04.
The financial commitment to XTX301 and the expected reduction in 2024 EPS indicate a short-term financial burden for Gilead. However, the strategic investment in a Phase 1 program suggests long-term growth potential in oncology, which may initially weigh on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Xilio Therapeutics secures a licensing deal with Gilead Sciences for its Phase 1 program, XTX301, receiving $43.5 million upfront and up to $604 million in potential future payments. This deal represents a significant financial infusion and milestone-based opportunity for Xilio.
The upfront payment and potential for significant milestone payments provide a substantial financial boost to Xilio. This influx of capital is crucial for the continued development of XTX301 and potentially accelerates its path to market, positively impacting Xilio's stock in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 90