FOSTER CITY, Calif. & LOS ANGELES - Gilead Sciences, Inc. (NASDAQ:GILD) and biotech firm Terray Therapeutics have entered into a strategic collaboration to develop small molecule therapies using Terray's tNova drug discovery platform. The partnership, announced today, will focus on identifying therapeutic candidates across multiple disease targets.
Terray's tNova platform employs a combination of high-throughput chemical experimentation and computational analysis, powered by generative artificial intelligence (AI), to accelerate the drug discovery process. This innovative approach aims to efficiently identify molecules that can address complex challenges in developing new treatments.
Under the agreement, Terray will receive an upfront payment from Gilead and is eligible for additional milestone payments based on the achievement of preclinical, clinical, and sales targets. Additionally, Terray stands to earn tiered royalties on net sales of any products commercialized by Gilead as a result of the collaboration. Gilead, which currently generates $28.3 billion in annual revenue and offers a 3.35% dividend yield, appears fairly valued according to InvestingPro's comprehensive Fair Value analysis.
Gilead's Executive Vice President of Research, Flavius Martin, M.D., expressed enthusiasm for the partnership, highlighting the potential of Terray's integrated discovery platform to enhance Gilead's internal research capabilities. Jacob Berlin, Ph.D., CEO of Terray Therapeutics, also conveyed excitement about the strategic partnership, emphasizing the unique capabilities of the tNova platform to discover transformative small molecule therapeutics.
The collaboration is expected to have a nominal impact on Gilead's 2024 earnings per share (EPS), reducing both GAAP and non-GAAP EPS by approximately $0.01.
Gilead Sciences is known for its innovative medicines that target life-threatening diseases, including HIV, viral hepatitis, COVID-19, and cancer. The company has a global presence, operating in over 35 countries with its headquarters in Foster City, California. The stock has shown strong momentum with a 45.8% price return over the past six months. For deeper insights into Gilead's financial health and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which provides comprehensive analysis of this and 1,400+ other US stocks.
Terray Therapeutics is a biotechnology company leveraging AI, ultra-high throughput experimentation, and various other scientific disciplines to revolutionize small molecule therapeutic discovery.
This news is based on a press release statement and includes forward-looking statements subject to risks and uncertainties, such as Gilead's ability to achieve the anticipated benefits from the collaboration and potential regulatory hurdles.
In other recent news, Gilead Sciences continues to make strides in the biopharmaceutical industry. Bernstein SocGen Group maintained its Outperform rating and $105.00 price target for Gilead, expressing confidence in the company's HIV treatments, particularly the potential success of Lenacapavir. Gilead's CEO, Dan O'Day, highlighted the expected impact of a new hire in bolstering the company's late-stage development capabilities. Meanwhile, Deutsche Bank (ETR:DBKGn) maintained its Hold rating with a $73.00 price target, focusing on the longevity of Gilead's HIV franchise and the potential of reaching untapped HIV patient segments.
Gilead also received a positive opinion from the Committee for Medicinal Products for Human Use of the European Medicines Agency for seladelpar, a treatment for primary biliary cholangitis. This followed a successful Phase 3 trial, further solidifying Gilead's commitment to innovation and diversification. The company also reported promising interim results from its Phase 3 ASSURE study on Livdelzi, another treatment for primary biliary cholangitis.
Additionally, Gilead entered into an exclusive agreement with Tubulis to develop an antibody-drug conjugate for solid tumor treatment. Leerink Partners and Oppenheimer increased their price targets for Gilead, reflecting confidence in the company's strategic direction and long-term prospects. These recent developments demonstrate Gilead's ongoing commitment to HIV treatment and prevention, as well as potential for growth and profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.