Biopharmaceutical company Gilead Sciences Inc (Nasdaq: GILD) and biotechnology company Lakefront Biotherapeutics NV (Euronext & Nasdaq: LKFT), formerly known as Galapagos, confirmed late Thursday the successful completion of the previously announced acquisition of Ouro Medicines, strengthening their focus on T cell engager therapies for autoimmune diseases.

THis transaction adds gamgertamig (OM336), a clinical-stage BCMAxCD3 T cell engager, to Gilead's inflammation portfolio and establishes the foundation of Lakefront's clinical development pipeline. The candidate is being developed for severe antibody-mediated orphan diseases, including autoimmune haemolytic anaemia (AIHA) and immune thrombocytopenia (ITP), and has received US FDA Fast Track and Orphan Drug Designations for both indications.

Gamgertamig is in-licensed from Keymed Biosciences, which owns the rights to develop the programme in Greater China.

Under the agreement, Gilead acquired all outstanding equity of Ouro Medicines for USD1.675bn, with up to USD500m in contingent milestone payments. Gilead and Lakefront will share the upfront consideration and potential milestone payments equally, subject to customary adjustments.

Lakefront has acquired substantially all of Ouro Medicines' team and operational assets and will collaborate with Gilead on gamgertamig's development. Lakefront will lead ongoing and future Phase 1/2 studies, while Gilead will oversee registrational and later-stage development and retain worldwide commercialisation rights outside Keymed's territories.

Lakefront will receive tiered royalties of 20% to 23% on net sales of gamgertamig and has in-licensed three preclinical autoimmune programs from Ouro. Gilead holds an opt-in right for a 50/50 profit split after clinical proof-of-concept for USD75m per programme.

The transaction also provides flexibility under the companies' existing collaboration agreement, allowing Lakefront to deploy at least USD500m of available cash independently, including up to USD150m for share repurchases. Following the acquisition, Lakefront expects the Ouro portfolio to become the cornerstone of its R&D pipeline. The company projects a year-end 2026 cash balance of approximately EUR2bn.