Gilead nears up to $2 billion buyout of biotech Ouro Medicines, FT reports

March 23 (Reuters) – Gilead Sciences is close to reaching a deal to acquire Ouro Medicines, a biotech focused on immune disorder treatments, for up to $2 billion, the Financial Times reported on Monday.

Under the proposed terms, Gilead will pay Ouro’s investors roughly $1.5 billion upfront in cash and at least an additional $500 million if certain clinical trial milestones are hit, the report said, ​citing people familiar with ​the matter.

Privately held Ouro is testing an antibody drug, gamgertamig, in early-stage studies to treat autoimmune conditions, including hemolytic anemia and Sjögren’s disease, a muscle-weakening disorder.

Gilead, best known for its HIV drugs, has been looking outside of its key areas for growth amid looming patent expiries and declining sales of its COVID-19 drug Veklury.

The drugmaker agreed to buy partner Arcellx for up to $7.8 billion last month, its biggest deal since 2020, to strengthen its lineup of cancer treatments.

The deal to acquire Ouro could be announced in the coming days, the FT report said, adding that the timing and terms could change.

Gilead and Ouro Medicines did not immediately respond to Reuters requests for comment.

California-based Ouro is backed by investors including private equity firm TPG, British drugmaker GSK and venture capital firm Monograph Capital.

(Reporting by Mariam Sunny and Sahil Pandey in Bengaluru; Editing by Shilpi Majumdar and Shailesh Kuber)