Gilead agrees to pay $1.275 billion upfront for PepStar’s oral IL‑23 inhibitor, targeting J&J’s Icotyde

Gilead Sciences has entered into a transaction to acquire PepStar Therapeutics' oral IL‑23 receptor inhibitor program. The deal is valued at $1.275 billion in upfront cash, roughly $1.3 billion as reported.

The acquisition positions Gilead to challenge Johnson & Johnson’s marketed IL‑23 antibody, Icotyde, across multiple inflammatory indications. By adding an oral candidate, Gilead aims to broaden its portfolio in the competitive immunology space.

PepStar’s program focuses on an oral small‑molecule approach, which could offer patients a more convenient alternative to injectable biologics. The move reflects Gilead’s strategy to diversify beyond its existing antiviral and oncology assets.

The transaction underscores the growing interest among large pharma companies in oral therapies for chronic inflammatory diseases, a market that continues to attract significant investment.