Gilead Sciences exercised the option to license Assembly Biosciences’ programs for recurrent genital herpes, including investigational candidates ABI-1179 and ABI-5366.
- Gilead will advance the clinical development and commercialization of the programs and Assembly Bio will receive a $35 million payment for Gilead’s exercise of the combined HSV program option.
- H.C. Wainwright believes Gilead's opt-in "significantly de-risks the programs and provides Assembly with a strong financial foundation to execute across its pipeline of next-generation antivirals."
- According to Gilead, over four million people in the U.S. and major European countries experience recurrent genital herpes.
Shares of Assembly Biosciences Inc closed up 3% on Monday after Gilead Sciences exercised the option to license the company’s programs for recurrent genital herpes in a move applauded by Wall Street.
The programs include investigational candidates ABI-1179 and ABI-5366. Gilead will advance the clinical development and commercialization of the programs under its ongoing collaboration with Assembly Bio which was inked in 2023 and spans 12 years. Assembly Bio will receive a $35 million payment for Gilead’s exercise of the combined HSV program option and remains eligible for up to $330 million in regulatory and commercial milestones, as well as tiered royalties on net sales.
H.C. Wainwright analyst Patrick Trucchio subsequently reiterated a ‘Buy’ rating on Assembly Biosciences (ASMB) with a $50 price target. The analyst believes Gilead's opt-in "significantly de-risks the programs and provides Assembly with a strong financial foundation to execute across its pipeline of next-generation antivirals."
About The Programs
Genital herpes is a common sexually transmitted infection (STI) caused by the herpes simplex virus (HSV), leading to painful blisters and sores around the genitals or anus, though many people have mild or no symptoms and don't know they're infected. Spread through skin-to-skin contact, especially during sex, the virus stays in the body, causing recurring outbreaks triggered by stress, illness, or fatigue.
According to Gilead, over four million people in the U.S. and major European countries experience recurrent genital herpes. No new therapies have been approved for HSV in the U.S. or Europe for more than 25 years, the company noted.
ABI-1179 and ABI-5366 are novel long-acting inhibitors of viral helicase-primase, an enzyme essential for herpes virus replication. Positive interim Phase 1b data for ABI-5366 and ABI-1179 demonstrated strong antiviral activity and improvements in clinical outcomes, including significant reduction in virus-positive lesions, the company noted. Both compounds also exhibit pharmacokinetic and safety profiles supportive of once-weekly oral dosing.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around ASMB rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘normal’ levels.
Sentiment around GILD stayed within the 'neutral' territory in the meantime.
Shares of GILD have risen nearly 34% this year while ASMB shares have more than doubled.
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