Gilead and Genelabs in research collaboration

Gilead Sciences and Genelabs Technologies have signed an agreement to collaborate in the research, development and commercialisation of novel compounds for the treatment of infection caused by the hepatitis C virus (HCV).

In this collaboration, Genelabs will lead research efforts and Gilead will lead development and commercialisation efforts for novel nucleoside inhibitors of HCV polymerase.

Under the terms of the agreement, Gilead will pay to Genelabs a nonrefundable $8m upfront payment and will provide research funding over the next three years. In return Genelabs will devote a specified number of scientists to the program and provide Gilead with exclusive access to certain compounds developed in the program. Genelabs could also earn milestone payments of up to $38m for each compound developed by Gilead under the agreement, based upon the achievement of specified development and regulatory goals. Gilead will receive exclusive worldwide license rights and will pay Genelabs a royalty on any net sales of future products arising from the collaboration.