By Colin Kellaher

Gilead Sciences Inc. (GILD) and Scholar Rock Holding Corp. (SRRK) on Wednesday said they will work together to develop therapies for fibrotic diseases in a deal that could be worth more than $1.4 billion to Scholar Rock.

Gilead, a Forest City, Calif., biopharmaceutical company, said it will make a $50 million upfront cash payment to Scholar Rock and buy $30 million worth of Scholar Rock common stock.

The companies said Scholar Rock will receive a $25 million payment upon the successful completion of specific preclinical studies, and the Cambridge, Mass., biopharmaceutical company will be eligible for up to an additional $1.425 billion in potential milestone payments.

Gilead and Scholar Rock said they plan to develop highly specific inhibitors of transforming growth factor beta, or TGF<BETA>, activation for the treatment of fibrotic diseases. The companies said Gilead has exclusive options to license worldwide rights to product candidates that emerge from three Scholar Rock TGF<BETA> programs.

The companies said TGF<BETA>-driven signaling is thought to be a central regulator of fibrosis, a debilitating pathological feature of many diseases that scars tissues and vital organs and is a major cause of morbidity and mortality.

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

(END) Dow Jones Newswires

December 19, 2018 08:47 ET (13:47 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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