Gilead to Spend $1.275B on PepStar's Phase 1 Oral IBD Drug

Gilead Sciences has agreed to buy an early-stage oral drug program for inflammatory bowel disease from PepStar Therapeutics. Gilead will pay $1.275 billion in cash up front. The California company announced the deal on Oct. 22, 2026.

What happened

Gilead said it will acquire PepStar's oral IL-23R inhibitor program. The lead drug is called HCXT-2001. Gilead gets worldwide rights to the program.

• Price: $1.275 billion in upfront cash, paid at closing and subject to customary adjustments, according to Gilead.
• Stage: HCXT-2001 is in Phase 1 trials. Gilead said its safety and efficacy have not been established and no regulator has approved it.
• The drug: Gilead describes it as an oral macrocyclic peptide that blocks the IL-23 receptor and has an extended half-life.
• Timing: Gilead expects the deal to close in the fourth quarter of 2026, subject to customary conditions.
• Cost to earnings: Gilead expects the deal to reduce its GAAP and non-GAAP earnings per share by about $0.79 to $0.83 in that quarter.

PepStar is a private, clinical-stage company based in Shanghai, BioPharm International reported. Its founder and CEO, Haibing Guo, called the sale a major milestone for the company.

Why it matters

Gilead is paying $1.275 billion up front for a drug that is still in Phase 1. BioPharm International noted that neither company has shared clinical data. It also reported that the registered Phase 1 study enrols healthy adults, not people with IBD.

Gilead sees the drug as a possible pill on its own or in a combination. Its chief medical officer, Dietmar Berger, said HCXT-2001 could be used alone or combined with emvistegrast as a daily oral treatment for IBD.

Emvistegrast is Gilead's own experimental once-daily oral pill. On Oct. 19, 2026, Gilead said a Phase 2 study of it in ulcerative colitis met its main goal, BioPharm International reported. At week 12, 66% of patients on the 200 mg dose had a clinical response, compared with 37% on placebo. The study enrolled 238 adults.

Gilead is not alone in chasing this target with a pill. Johnson and Johnson's icotrokinra, sold as Icotyde, is an oral peptide that blocks the same receptor. The FDA approved it in March 2026 for moderate to severe plaque psoriasis. J&J is also testing it in ulcerative colitis and Crohn's disease.

What it means for people in the industry

The deal adds to Gilead's push in inflammation, which the company says covers IBD, lupus, type 2 inflammatory diseases and B cell driven autoimmune diseases. The companies did not say whether the deal will change jobs or sites in the US or Canada.

Things to watch include the closing in the fourth quarter, the first clinical data for HCXT-2001, and Gilead's plan to start a Phase 3 study of emvistegrast alone in 2027.

This article is news, not medical advice.

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Sources

• Gilead to Acquire Investigational Oral IL-23R Inhibitor HCXT-2001, Strengthening Its Inflammation Pipeline in IBD, Gilead Sciences
• Gilead to Buy Oral IL-23R Peptide HCXT-2001 for $1.275 Billion, BioPharm International
• Roundup: Gilead Acquires Oral IL-23R Inhibitor From PepStar for $1.275 Billion, Zymeworks Licenses DLL3-Targeting T Cell Engager to Roche, Pharmaceutical Executive