GRTS - Gritstone Oncology soars 44% on collaboration with Gilead Sciences in HIV

Gilead Sciences (GILD) and Gritstone Oncology (GRTS), up 44% premarket have entered into a collaboration, option and license agreement to research and develop a vaccine-based immunotherapy to find a curative treatment for HIV infection. Under the terms of agreement, Gilead will make a $60M payment at closing, consisting of a $30M upfront cash payment and a $30M equity investment at a premium.Gilead will be responsible for conducting a Phase 1 study for the HIV-specific therapeutic vaccine and holds an option to obtain an exclusive license to develop and commercialize the vaccine beyond Phase 1.Gritstone is also eligible to receive up to an additional $725M if the option is exercised and if certain milestones are achieved, as well as mid single-digit to low double-digit tiered royalties on net sales upon commercialization.

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Gritstone Oncology soars 44% on collaboration with Gilead Sciences in HIV