Story
Assembly Biosciences Stock Jumps After Opting Into Gilead Herpes Drug Profit-Sharing Deal
Shares of Assembly Biosciences (ASMB) surged in after-hours trading Tuesday after the company announced it exercised a key option in its collaboration with Gilead Sciences (GILD). The biotechnology firm opted to share in 40% of the U.S. development costs and future profits for its partnered herpes simplex virus (HSV) program.
Details of the Agreement
Assembly Bio's decision follows a review of Gilead’s comprehensive development plan for the HSV helicase-primase inhibitor program, according to the company's statement. By opting in, Assembly Bio secures a significant stake in the potential U.S. commercial success of the treatments while Gilead retains sole responsibility for clinical development and commercialization.
Under the terms of the partnership, Assembly Bio also remains eligible for significant future payments, including:
- Up to $280 million in potential regulatory and commercial milestones.
- Tiered royalties on all net sales outside of the United States.
Program and Financial Outlook
AdThe collaboration centers on two investigational compounds, GS-1179 and GS-5366, which are being developed to treat recurrent genital herpes. Gilead selected the lead candidate, GS-1179, for advancement into further studies based on promising Phase 1b data and its potential for a once-weekly oral dosing schedule, a key differentiator from existing therapies.
Alongside the program update, Assembly Bio reaffirmed its strong financial position, stating that its current cash runway is expected to extend into 2029. The company's finances are supported in part by a $75 million collaboration extension fee from Gilead, which is due in the fourth quarter of 2026.
Market Reaction
Investors reacted positively to the news, which signals confidence in the HSV program's trajectory. Assembly Bio's stock rose 4.9% to $37 in after-hours trading on Tuesday. The move was driven by company-specific news, as the broader S&P 500 and Nasdaq indices were nearly unchanged during the regular session.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.