Gilead Sciences struck a deal with Swiss pharma giant Novartis for three preclinical antiviral 

programs aimed at the treatment of human rhinovirus, influenza and herpes viruses.

Gilead will acquire the exclusive rights to develop and commercialize the novel small molecul

es against three undisclosed targets. Under terms of the deal, Novartis will receive an 

undisclosed upfront payment, as well as an additional $291 million in potential milestone 

payments upon achievement of certain development and commercial milestones, as well as 

royalties on annual net sales.

John McHutchison, the outgoing chief scientific officer and head of research at Gilead 

Sciences, said the announcement builds upon the company’s “heritage in antiviral research 

and development.” Gilead’s antiviral portfolio includes among the most widely used medicines 

for the treatment of HIV, hepatitis B and hepatitis C, as well as influenza infection.

Gilead Chief Executive Officer John O’Day has been busy since taking over the helm of the 

company in March. Not only has he been adjusting his executive leadership support team to 

drive the company forward, he has also been focused on the company’s pipeline, which 

includes striking deals ahead of the company’s planned quarterly release at the end of the 

month. Over the past several weeks, O’Day and his Gilead team have been striking various 

deals to support the development of therapeutics for a number of diseases and illnesses. 

Earlier this month, the company increased its stake in Belgium-based Galapagos NV by 

forging a 10-year R&D collaboration. Under terms of the deal, worth nearly $5 billion, Gilead 

will gain access to an innovative portfolio of compounds, including six molecules currently in 

clinical trials, more than 20 preclinical programs and a proven drug discovery platform. 

Galapagos assets at the center of the deal include GLPG1690, a Phase III candidate for 

idiopathic pulmonary fibrosis and GLPG1972, a Phase IIb candidate for osteoarthritis.