Assembly Biosciences is a QB3 incubator alum. From the story by Ron Leuty in the San Francisco Business Times.
Fifteen months ago, Assembly Biosciences Inc. had a different CEO, cut 30 jobs and shut down a hepatitis B program so it could focus its resources on other drugs.
On Tuesday, under new President and CEO Jason Okazaki, the South San Francisco company (NASDAQ: ASMB) will get $100 million upfront in cash and stock in a 12-year research and development pact with Gilead Sciences Inc. (NASDAQ: GILD). The deal focuses initially on herpes virus, hepatitis B virus and hepatitis D virus.
The deal comes after Assembly earlier this month selected its second development candidate this year, an oral small-molecule drug designed to block the entry of the hepatitis D virus. Its other new drug candidate targets high-recurrence genital herpes.
The moves represent a scene shift for Assembly, which at the end of June had just $59.8 million in cash, equivalents and marketable securities. The $100 million that Assembly will receive from Foster City-based Gilead consists of $84.8 million cash and a $15.2 million equity investment.
Assembly also is eligible to receive three separate $75 million "collaboration extension" payments from Gilead at pre-specified but undisclosed timepoints. Those payments are meant to fund future research and development.
Assembly could receive up to $330 million in regulatory and commercial milestones for each program for each Gilead opt-in.
Gilead for $45 million can opt in to get exclusive rights for each of Assembly's current and future programs, including two preclinical programs in herpes simplex virus and transplant-associated herpes viruses that Gilead is licensing to Assembly.
Shares of Assembly closed Monday at 72.6 cents but fell back to 70.39 cents in after-hours trading. Through mid-day trading Tuesday, its stock was up 60 cents, or more than 83%.
Okazaki is no stranger to Gilead — he was the big biopharma company's senior vice president of legal, inspecting many of Gilead's acquisitions, divestitures and strategic collaborations. He joined Assembly in 2020 as chief legal and business officer and was promoted last year to president and COO and then CEO when John McHutchison, another Gilead alumnus, retired.
"This transaction represents a critical step in Assembly Bio's path to becoming a fully integrated biotechnology company," Okazaki said in a statement, "and we are eager to begin working with our new partner."