Assembly Biosciences Strikes $330M Deal with Gilead to Revolutionize Herpes Treatment
Assembly Biosciences has secured a major alliance with pharmaceutical giant Gilead Sciences. The deal, finalized in late December 2025, marks a significant shift for the biotech firm as it moves from clinical-stage speculation to a validated business model. Shares surged by over 87% in 2025, though recent trading shows a minor pullback to around $32 per share.
The agreement centers on Assembly Biosciences’ antiviral programs targeting recurrent genital herpes. Gilead Sciences exercised its option to exclusively license two key drug candidates: ABI-1179 and ABI-5366. As part of the deal, Assembly Biosciences received an immediate $35 million upfront payment, with potential milestone payments reaching up to $330 million if development targets are met.
The alliance provides more than just funding. It reduces development risks for Assembly Biosciences while delivering a critical capital boost without requiring additional shareholder dilution. Analysts highlight this as a turning point, shifting the company from a speculative bet to a more stable, alliance-driven model. Market reaction has been mixed. After hitting a 52-week high of $38.50, the share price dipped slightly to around $32. However, investment firm HC Wainwright maintains a 'Buy' rating, setting a $50.00 price target—suggesting strong confidence in future growth. Optimism stems from the company’s recent progress in its antiviral pipeline and the financial security brought by the Gilead collaboration.
The Gilead alliance solidifies Assembly Biosciences’ position in antiviral research. With $35 million already secured and up to $330 million in potential future payments, the company now operates on firmer financial ground. Analysts continue to monitor the stock closely, noting its recent correction as a typical adjustment rather than a cause for concern.
Read also:
- India's Agriculture Minister Reviews Sector Progress Amid Heavy Rains, Crop Areas Up
- Cyprus, Kuwait Strengthen Strategic Partnership with Upcoming Ministerial Meeting
- Inspired & Paddy Power Extend Virtual Sports Partnership for UK & Ireland Retail
- South West & South East England: Check & Object to Lorry Operator Licensing Now
