Gilead is spending $320 million to buy out Johnson & Johnson’s global royalties for primary biliary cholangitis drug seladelpar a week before the FDA is expected to decide whether to approve it.
In its second-quarter earnings report on Thursday, the company said it entered into an amended licensing agreement with J&J’s pharmaceutical business. The deal is expected to be reflected in the third quarter.
Gilead snagged seladelpar earlier this year when it acquired CymaBay Therapeutics for $4.3 billion, betting big on the drug’s ability to treat primary biliary cholangitis, an autoimmune condition where the body’s immune system attacks the liver’s bile ducts. In 2006, Janssen and CymaBay entered into a royalty-bearing deal in which Janssen stood to gain up to 8% in royalties on net sales of seladelpar and other select CymaBay assets.
Analysts have estimated seladelpar could eclipse at least $500 million in peak sales. The drug’s PDUFA data is Wednesday.
Gilead reported notable growth in other staple disease areas in the second quarter, namely a 15% increase in oncology revenue to $841 million. Sales of cell therapy Tecartus also stood out, increasing 21% to $107 million.
Gilead raised the low end of its non-GAAP earnings per share guidance by $0.15 per share, from $3.45 per share to $3.60 per share. A spokesperson confirmed that the guidance raise takes into account the new transaction with J&J.