Gilead Sciences, Tango Therapeutics Agree to Jointly Develop Immuno-Oncology Therapies

Gilead Sciences (GILD), a biopharmaceutical company, said Wednesday it has formed a global strategic collaboration with Tango Therapeutics, Inc. to discover, develop, and commercialize a pipeline of targeted immuno-oncology treatments for cancer patients.

Under the multi-year agreement, Tango will perform target discovery and validation, and Gilead will have options to worldwide rights on up to five targets emerging from Tango’s proprietary functional genomics-based discovery platform. For two programs directed to these targets, Tango will retain the option to co-develop and co-detail in the US. The collaboration does not include Tango’s lead programs, for which Tango will retain all rights.

According to the terms of the deal, Tango will receive an upfront payment of $50 million, and will be eligible to receive approximately $1.7 billion in total additional payments across all programs in the form of pre-clinical fees and development, regulatory and commercial milestone payments, and up to low double-digit tiered royalties on net sales.

For those programs that Tango opts in to co-develop and co-detail, the companies will divide profits and losses evenly for the US, while development costs will be shared in a manner that is commensurate with product rights, and Tango will be eligible to receive milestone payments and royalties on non-US sales.