Gilead Sciences GILD recently announced that it has exercised its combined option to exclusively license Assembly Biosciences’ ASMB herpes simplex virus (HSV) helicase-primase inhibitor programs. The HSV programs include novel long-acting investigational candidates, ABI-1179 and ABI-5366, which are being developed in early-stage studies for recurrent genital herpes.
This marks the first programs that Gilead will advance under the company’s ongoing collaboration with Assembly Bio.
Gilead entered into a 12-year partnership with Assembly Biosciences to advance the research and development of novel antiviral therapies in 2023.
Per the agreement, Assembly Bio will receive a payment of $35 million following Gilead’s exercise of its option for the combined HSV program, which includes ABI-5366 and ABI-1179. Gilead will obtain an exclusive license to ABI-5366 and ABI-1179 and assume full responsibility for their clinical development and commercialization.
ASMB will be eligible to receive up to $330 million in regulatory and commercial milestones, along with tiered royalties on net sales.
GILD’s Price Performance
In the past six months, shares of Gilead have increased 15.8% compared with the industry’s rally of 23.8%.
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More on GILD's Latest Development With Herpes Programs
Both ABI-1179 and ABI-5366 are long-acting helicase-primase inhibitors with the potential to improve chronic suppressive therapy for recurrent genital herpes.
Interim data from a phase Ib study showed that treatment with ABI-5366 and ABI-1179 resulted in strong antiviral activity and improvements in clinical outcomes, including a significant reduction in virus-positive lesions.
Per the company, more than four million people in the United States and some European countries suffer from recurrent genital herpes, most commonly caused by HSV-2 infections, which often leads to multiple recurrences each year. Genital herpes is a chronic HSV infection that often leads to an increased risk of HIV infection.
Notably, no new HSV therapies have been approved in the United States or Europe in over 25 years.
Hence, if successfully developed and upon potential approval, ABI-5366 and ABI-1179 may offer new treatment options for patients with recurrent genital herpes.
GILD Boasts Strong HIV Portfolio
Gilead has a market-leading HIV franchise, led by flagship HIV therapies — Biktarvy and Descovy. Both products have fueled GILD’s top-line growth over the past several quarters.
Earlier this year, GILD’s HIV portfolio received a boost with the FDA approval for its twice-yearly injectable HIV-1 capsid inhibitor, lenacapavir, for the prevention of HIV. This groundbreaking injectable therapy marks the first and only twice-yearly PrEP option available in the United States.
The FDA approval of lenacapavir under the brand name Yeztugo solidifies GILD’s HIV portfolio as its other prevention drug, Truvada, faces generic competition.
Approval of additional HIV treatments should strengthen its dominant HIV franchise.
GILD’s Zacks Rank & Stocks to Consider
Gilead currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are CorMedix CRMD and Castle Biosciences CSTL, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for CorMedix’s 2025 earnings per share (EPS) have increased from $1.85 to $2.87. EPS estimates for 2026 have moved up from $2.49 to $2.88 during the same period. CRMD stock has declined 21.2% in the past six months.
CorMedix’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 27.04%.
In the past 60 days, estimates for Castle Biosciences’ loss per share have narrowed from 64 cents to 34 cents for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.82 to $1.06. In the past six months, shares of CSTL have surged 116.1%.
Castle Biosciences’ earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, the average surprise being 49.3%.
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