Gilead, Merck Team Up To Develop Long-Acting HIV Infection Treatments

Gilead Sciences Inc GILD and Merck & Co MRK have entered into an agreement to co-develop and co-commercialize HIV therapies that combine Gilead's 'Lenacapavir' and Merck's 'Islatravir' into a two-drug regimen.

• The first clinical studies of the oral combination are expected to begin in the second half of 2021.
• The collaboration will initially focus on long-acting oral formulations and long-acting injectable formulations of these combination products.
• Across the oral and injectable formulations, Gilead and Merck will share global development and commercialization costs in a 60:40 ratio.
• For long-acting oral products, Gilead will lead commercialization in the U.S., and Merck will lead commercialization in the EU and the rest of the world.
• For long-acting injectable products, Merck will be responsible for commercialization in the U.S., and Gilead will lead commercialization in the EU and the rest of the world.
• Upon passing $2 billion a year in net product sales for the oral combination, the revenue split will adjust to 65% Gilead and 35% Merck for any revenues above the threshold.
• Upon passing $3.5 billion in sales for the injectable combination, the revenue split will adjust to 65% Gilead and 35% Merck for any revenues above the threshold.
• Islatravir (formerly MK-8591) is a nucleoside reverse transcriptase translocation inhibitor.
• Lenacapavir is a novel investigational capsid inhibitor that interrupts the activity of HIV capsid, a protein that surrounds and protects the virus's genetic material and essential enzymes.
• Price Action: GILD and MRK stocks are trading higher by 1.09% at $62.23 and 1.77% at $75.90, in market trading hours on the last check Monday.