Gilead pays $1.3B upfront to PepStar for oral IL-23 drug

· Health · United States · China

Gilead struck a deal with Shanghai-based PepStar Therapeutics, paying $1.28 billion upfront for a Phase 1 oral IL-23 drug, as it expands in the hot inflammation market. The California biopharma gains rights to the asset, which is early in development. The transaction is one of the largest upfront payments by a Western drugmaker for a China-origin asset this year, continuing a pattern of licensing deals that has grown despite political scrutiny of US-China biotech ties. The Treasury Department this week proposed restrictions on US investment in Chinese biotech, though licensing deals would remain permitted.

Why it matters：Big upfront payments for early-stage China assets show pharma's appetite for inflammation drugs and its willingness to keep licensing even as investment rules tighten.

Key points

  • Gilead paid $1.28 billion upfront to PepStar Therapeutics.
  • The asset is an oral IL-23 drug in Phase 1.
  • China-origin licensing deals remain permitted under the proposed Treasury rule.

Sources (original reporting)

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