Gilead to pay Assembly Bio an initial $100 million as part of 12-year partnership to develop antiviral drugs

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Gilead to pay Assembly Bio an initial $100 million as part of 12-year partnership to develop antiviral drugs
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Tomi Kilgore is MarketWatch's deputy investing and corporate news editor and is based in New York. You can follow him on Twitter @TomiKilgore.

Gilead Sciences Inc.

announced Tuesday a 12-year partnership Assembly Biosciences Inc. to develop antiviral therapies, with an initial focus in hepatitis B virus and hepatitis D virus. As part of the partnership, Gilead will pay Assembly $100 million, including $84.8 million upfront and a $15.2 million equity investment. Assembly’s stock was halted for news until 7:30 a.m. Eastern, while Gilead shares were still inactive. The equity investment represents 19.9% of the voting stock of Assembly. Separately, Gilead has agreed to buy up to 29.9% of Assembly’s voting stock at a premium.

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