Gilead Sciences announced on Tuesday that it has signed a deal with the biotechnology company Phenex Pharmaceuticals to buy its liver disease treatment program. The deal costs around $470 million for the development of a treatment for liver diseases including nonalcoholic steatohepatitis.
"This agreement represents a significant milestone for our company and for the field of liver disease research," Claus Kremoser, CEO of Phenex Pharmaceuticals AG, said in a press release. "After 15 years of research, FXR is now one of the few clinically validated targets for NASH and we are delighted that Gilead will be continuing the research necessary to more fully realize its potential for advanced liver disease."
Nonalcoholic steatohepatitis or NASH is a common and "silent" liver disease. It affects people who don't drink alcohol and can lead to liver cirrhosis in which the organ is permanently damaged. According to the National Institute of Diabetes and Digestive Kidney Diseases, it affects 2 to 5 percent of Americans and an additional 10 to 20 percent who have fatty liver.
The new treatment is likely to join Gilead's high-priced range of liver disease treatments although pricing was not mentioned in the release. Its Sovaldi costs $84,000 for a 12-week treatment, while the follow-up medication Harvoni costs $1,050 per pill, or around $63,000 for an eight-week period and $94,500 for 12 weeks.
The liver disease treatment, or farnesoid X receptor, developed by Phenex, regulates lipid, bile acid and glucose homeostasis, that can help lessen the inflammation in the liver and prevent liver fibrosis, according to the Wall Street Journal.
Gilead's stocks climbed by 1.46 at $98.64, the highest in two weeks, after the announcement, NASDAQ reports.