By Colin Kellaher


Gilead Sciences has signed an exclusive license agreement to develop and commercialize Xilio Therapeutics' tumor-activated IL-12 program in a deal potentially worth hundreds of millions of dollars to the clinical-stage biotechnology company.

Gilead and Xilio on Thursday said the deal includes Xilio's XTX301, which is currently being evaluated in a Phase 1 dose-escalation study in patients with advanced solid tumors.

The Foster City, Calif., biopharmaceutical company said it will make $43.5 million in upfront payments to Xilio, including a $30 million cash payment and an initial equity investment of $13.5 million.

The companies said Xilio is also eligible to receive up to $604 million in additional contingent payments, including additional equity investments, along with royalties on product sales.

Xilio, based in Waltham, Mass., has a current market capitalization of around $18.2 million based on Wednesday's closing price of about 64 cents. Trading in Xilio shares was halted premarket on Thursday.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

03-28-24 0733ET