Gilead Sciences, Inc. (NASDAQ:GILD) established a partnership with Tentarix Biotherapeutics to identify and develop innovative cancer and inflammation medicines.

Both businesses formed three multi-year agreements to find and develop multi-functional, conditional protein treatments for oncology and inflammatory illnesses using Tentarix’s unique Tentacles technology.

Tentarix will receive upfront payments and an equity investment from Gilead totaling $66 million throughout the three agreements, according to the conditions. Gilead will have the option to purchase up to three choice Tentarix subsidiaries housing the collaboration-developed programs for $80 million per subsidiary.

Tentarix is expected to supplement Gilead’s ongoing efforts, build on the company’s developing capabilities in protein therapies, and provide access to next-generation, multi-specific biologics.

Gilead anticipates that this deal will affect its bottom line (both GAAP and non-GAAP) by roughly 3-4 cents in 2023.

Gilead shares have fallen 7.3% this year, compared to a 12.6% drop in the industry.

GILD is looking to diversify into the lucrative oncology field as competition in its HIV business, which has been its growth engine, heats up.

The oncology company performed admirably in the first half of 2023, boosting its bottom line. The Cell Therapy franchise, which includes Yescarta and Tecartus, continues to see steady growth in sales, owing primarily to increased demand in the United States and Europe for Yescarta in relapsed or refractory (r/r) large B-cell lymphoma and Tecartus in adult R/R B-cell precursor acute lymphoblastic leukemia and mantle cell lymphoma.

Trodelvy, a breast cancer medication, has seen increased acceptance among pre-treated HR+/HER2- metastatic breast cancer patients in the United States.

Gilead is working to boost its pipeline in this field through strategic alliances and acquisitions, rather than developing a candidate from the ground up in oncology.

Gilead bought the privately held biotech business XinThera in May 2023. The acquisition adds pipeline assets in oncology and inflammation to Gilead’s existing clinical development goals.

Previously, it formed a strategic alliance with Arcellx, Inc. (NASDAQ:ACLX).CART-ddBMCA, a late-stage clinical asset in development for the treatment of multiple myeloma, will be co-developed and co-commercialized by ACLX.

The FDA, however, has placed a clinical hold on Arcellx’s iMMagine-1 program, which is aimed to investigate the lead program, CART-ddBCMA, for treating adult patients with relapsed or refractory multiple myeloma. The hold was imposed on June 16th, following the death of a patient.

Arcellx feels that bridging therapy limits are a contributing cause and is working with the FDA to change the protocol to provide patients with more options that are consistent with current clinical practice.

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