Gilead and Second Genome link up on microbiome research under a potential $1.5 billion deal

Shares of Gilead Sciences (Nasdaq: GILD) edged up 2.2% to $79.94 pre-market, after it announced a four-year collaboration with venture capital-backed Second Genome, to identify biomarkers associated with clinical response in up to five of Gilead’s pipeline compounds in inflammation, fibrosis and other diseases, and to identify potential new targets and drug candidates for the treatment of inflammatory bowel disease (IBD).

Under the terms of the agreement, Second Genome, a leader in microbiome science, will utilize its proprietary Microbiome Analytics Platform to identify novel biomarkers associated with clinical response to Gilead’s investigational medicines. This work will harness the latest insights in microbiome science to help inform patient stratification and optimize potential treatments for patients in the future. The platform, in combination with additional discovery and development tools, will also seek to identify new targets and drug candidates relevant to IBD. This will include the identification of up to five novel IBD targets or drug candidates over the next four years, with an option to extend the collaboration for an additional two years.

Terms of the accord