Gilead pays $1.275bn upfront for PepStar's Phase 1 oral IL-23 receptor peptide

Gilead Sciences has agreed to buy global rights to PepStar Therapeutics' oral IL-23 receptor inhibitor programme, led by HCXT-2001, for $1.275 billion upfront, Fierce Biotech reported on 23 October 2026¹. PepStar is based in Shanghai and the lead compound is in Phase 1¹.

The asset

HCXT-2001 is a macrocyclic peptide taken by mouth that blocks the IL-23 receptor, the same approach Johnson & Johnson used with Icotyde, a once-daily oral pill¹. PepStar has lengthened the molecule's half-life, and the multiple-ascending-dose stage of the first Phase 1 trial could test both daily and weekly dosing¹. Three studies are in healthy volunteers: two registered in China in August and September, which look at how food affects absorption, and a third in New Zealand testing two tablet forms¹.

Food matters commercially for this class. Icotyde patients must wait at least 30 minutes after a dose before eating, and Merck & Co.'s Lipfendra carries the same restriction¹.

What it means for the market

The price is the signal. A $1.275 billion upfront payment for a programme still in healthy-volunteer studies shows how much large companies will pay for a credible oral entrant to a class dominated by injections¹. AbbVie's injectable Skyrizi brought in nearly $10 billion in the first half of the year, and its label spans plaque psoriasis, psoriatic arthritis, Crohn's disease and ulcerative colitis; Icotyde so far is approved for plaque psoriasis, and J&J has not disclosed its sales¹.

The strategic logic for Gilead lies in combination. BMO Capital Markets analysts called the deal "a logical complement to emvistegrast that sets up a potential all-oral combination"¹. Emvistegrast, Gilead's α4β7 inhibitor, recently produced strong Phase 2 results¹. BMO added that less frequent dosing and pairing with emvistegrast "could represent key points of differentiation" for HCXT-2001¹.

For dealmakers, the structure stands out: Gilead is taking global rights from a Shanghai-based developer for a single upfront sum¹. For competitors in oral immunology, Icotyde has shown that oral macrocyclic peptides can survive the gut and reach targets that were once the preserve of injectables, and Gilead is now paying to join that race¹. The source does not give milestones, royalties or a closing date, so the full economics of the deal are not public.

Caveats

HCXT-2001 has not yet produced efficacy data in patients; all reported studies so far enrol healthy volunteers¹. Whether the extended half-life supports weekly dosing, and whether it frees patients from the food restrictions that apply to Icotyde, remains to be shown in the multiple-ascending-dose stage of the first Phase 1 trial¹.