Biologic drugmaker Gilead Sciences is buying a subsidiary of Nimbus Therapeutics and its experimental medicine for an increasingly prevalent metabolic disorder that causes dangerous fat buildup in the liver.
Gilead will pay $400 million for Nimbus Apollo. Parent company Nimbus Therapeutics eventually could receive another $800 million if Nimbus Apollo's drug development program meets certain milestones in testing results and eventual approval and sales of medicines.
Gilead has been sitting on billions of dollars in cash generated by it lucrative hepatitis C medicines, Harvoni and Sovaldi. Investors have been expecting some deals to boost Gilead's pipeline of future drugs before the hepatitis C revenue declines.
The Nimbus deal brings a drug that could treat fatty liver and possibly liver cancer and other diseases, plus technology for rapidly "designing" medicines.