Gilead and Scholar Rock are joining forces on new drugs for fibrotic diseases that inhibit the activation of transforming growth factor beta (TGFβ). Gilead is handing over $80 million upfront for the exclusive option to license global rights to three Scholar Rock programs. If the biotech meets all of its milestones across all three programs, the deal could end up being worth more than $1.5 billion.

The companies disclosed two of Scholar Rock’s programs: inhibitors targeting the activation of latent TGFβ1 with high affinity and specificity and those that target latent TGFβ1 in the extracellular matrix.

TGFβ-driven signaling is thought to play a key role in regulating fibrosis, a process that scars tissues and organs in many diseases. Inhibiting this signaling might represent a new way to quash pro-fibrotic signaling in multiple organs, the companies said in a statement.

Under the deal, Scholar Rock will handle antibody discovery and preclinical work through candidate nomination. At this point, Gilead can choose to option a program, after which the Big Pharma will take care of that program’s preclinical and clinical development and commercialization.

The upfront payment comprises $50 million in cash and a $30 million purchase of Scholar Rock stock. Scholar Rock stands to pick up another $25 million when it finishes "specific preclinical studies," and an additional $1.425 billion in research, development, regulatory and commercialization milestones.

While the partnership revolves around fibrotic diseases, such as diabetic kidney disease and nonalcoholic steatohepatitis (NASH), Scholar Rock will hold onto the rights to develop TGFβ inhibitors for oncology and cancer immunotherapy.

"Gilead’s commitment to developing innovative therapies for fibrotic diseases makes the company an ideal partner to maximize the value of candidates from our TGFβ program," said Scholar Rock CEO Nagesh Mahanthappa, Ph.D, in the statement. "This collaboration also emphasizes our belief in the tremendous potential of Scholar Rock’s broad pipeline of highly specific modulators targeting the TGFβ superfamily, with potential applications in a wide range of serious diseases, including neuromuscular disorders, cancer, fibrosis and anemia."

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