Gilead acquires Phenex program for NASH and other liver diseases

US biotech major Gilead Sciences (Nasdaq: GILD) and privately-held German biotech firm Phenex Pharmaceuticals have signed a definitive agreement under which Gilead will acquire Phenex’ Farnesoid X receptor (FXR) program comprising small molecule FXR agonists for the treatment of liver diseases including non-alcoholic steatohepatitis (NASH).

Gilead’s shares gained 2.3% to $99.03 by mid-morning today, on news of the deal, which broadens its horizons beyond hepatitis C and HIV. Under the terms of the deal, Gilead will pay Phenex an upfront payment plus additional payments based on the achievement of certain development milestones that may potentially be worth up to $470 million.

NASH is a common, serious chronic liver disease characterized by inflammation and excessive fat accumulation in the liver and may lead to progressive fibrosis, cirrhosis and liver failure. NASH is estimated to affect 10% to 20% of people in the developed world.