Gilead and Lakefront Complete Acquisition of Ouro Medicines for $1.675 Billion
Gilead Sciences and Lakefront Biotherapeutics have announced the completion of their acquisition of Ouro Medicines, adding gamgertamig, a leading molecule in the treatment of autoimmune diseases, to their portfolio. This move accelerates Gilead's strategy in inflammation and strengthens Lakefront's clinical portfolio.
A $1.675 Billion Acquisition Equally Shared
Gilead Sciences and Lakefront Biotherapeutics finalized the acquisition of Ouro Medicines for an initial amount of $1.675 billion, along with conditional payments that could reach $500 million. The initial cost is evenly split between the two partners, with each funding $837.5 million. Conditional payments will also be equally shared. This operation adds gamgertamig (OM336) to Gilead's portfolio, a leading clinical-phase molecule designed to target autoimmune diseases mediated by autoantibodies. Gamgertamig is a BCMA x CD3 bispecific capable of inducing rapid and profound depletion of plasma cells and B cells after a limited number of subcutaneous administrations. The molecule has been granted orphan drug designation and Fast Track status by the FDA for the treatment of autoimmune hemolytic anemia (AIHA) and immune thrombocytopenia (ITP). It is expected to enter registration studies by 2027.
Shared Development and Commercial Rights for Gilead
Under the terms of the agreement, Lakefront acquired a significant portion of Ouro Medicines' team and operational assets and will collaborate with Gilead on the development of gamgertamig. Lakefront will lead the phase 1/2 clinical studies, while Gilead will handle the registration studies and later phases. Gilead retains exclusive global commercial rights, except in territories controlled by Keymed, which holds development rights in Greater China. Lakefront will receive tiered royalties ranging from 20% to 23% on the net sales of gamgertamig generated by Gilead. Concurrently, Lakefront has in-licensed a preclinical portfolio of three additional programs focused on autoimmunity, for which Gilead has a later-stage entry option, involving a 50/50 profit share after clinical proof of concept, for $75 million per program.
Lakefront Regains Financial Autonomy
This transaction eases the constraints of the licensing, option, and collaboration agreement signed on July 14, 2019, between Lakefront and Gilead. It allows Lakefront to independently deploy at least $500 million of its available cash, including up to $150 million for share buybacks. Lakefront plans to retain the majority of its cash for other strategic operations, with an expected cash balance of about €2 billion at the end of 2026. The Ouro portfolio will become the foundational element of Lakefront's R&D pipeline.
