Gilead buys $275 million stake in Pionyr

June 23, 2020

Gilead Sciences will acquire a 49.9% percent equity interest in Pionyr Immunotherapeutics for $275 million. Gilead also won the exclusive option to buy out the remainder of the cancer immunotherapy developer. Under the agreement, Pionyr’s shareholders may receive up to an additional $1.47 billion in option exercise fees and future milestone payments.

According to Gilead, Pionyr’s Myeloid Tuning therapies have the potential to treat patients who currently do not benefit from checkpoint inhibitor therapies.

"Pionyr is pursuing promising, novel biology in the field of immuno-oncology,” said Daniel O’Day, chairman and CEO of Gilead. "The agreement represents important progress as we continue to build out Gilead's presence in immuno-oncology with innovative and complementary approaches."

Under the terms of the agreement, Pionyr’s shareholders will receive $275 million upon closing. Gilead will receive 49.9 percent of the common stock of Pionyr and an exclusive option to purchase the remaining equity. Gilead may exercise its exclusive option upon completion of Phase 1b studies for PY314 and PY159, or at an earlier time if Gilead chooses to do so, for a $315 million option exercise fee and up to $1.15 billion in potential future milestone payments. Gilead will provide Pionyr with additional funding for the PY314 and PY159 clinical programs, as well as ongoing research and development programs.

Read the Gilead release