--- title: 'Industry Daily Summary: What Happened on October 24, 2026' headline: Gilead pays PepStar $1.275 billion upfront for oral immune-drug program description: Zymeworks licensed a cancer drug to Roche, and Treasury proposed limits on some US biotech investments abroad. url: https://thebench.bio/news/industry/2026-10-24 topic: industry date: '2026-10-24' covers: - '2026-10-24' date_published: '2026-10-24T12:01:46Z' date_modified: '2026-10-24T12:01:46Z' tags: - Industry - Funding sources: 6 publisher: TheBench.Bio --- # Industry Daily Summary: What Happened on October 24, 2026 **Gilead pays PepStar $1.275 billion upfront for oral immune-drug program** Zymeworks licensed a cancer drug to Roche, and Treasury proposed limits on some US biotech investments abroad. ## Today in brief Gilead agreed to pay PepStar Therapeutics $1.275 billion upfront for worldwide rights to its oral IL-23 receptor program, including HCXT-2001. [1] [2] Zymeworks licensed its cancer drug ZW209 to Roche, while Treasury proposed restricting some US biotech investments in China and other countries of concern. [3] ## Gilead pays $1.275 billion upfront for PepStar’s oral drug Gilead agreed to pay PepStar Therapeutics $1.275 billion upfront for worldwide rights to its oral interleukin-23 receptor inhibitor program, led by HCXT-2001. [1] [2] HCXT-2001, a macrocyclic peptide, is in Phase 1 testing in healthy volunteers in Australia and has no clinical efficacy data yet. [1] [2] Gilead expects the deal to close in the fourth quarter of 2026, subject to customary conditions. [2] Gilead’s chief medical officer said HCXT-2001 could be developed alone or with emvistegrast as an oral treatment for inflammatory bowel disease. [2] [4] In a Phase 2 ulcerative colitis study, emvistegrast produced a clinical response at 12 weeks in 66% of participants on the highest dose, versus 37% on placebo. [2] [5] Remission rates were 31% and 8%, respectively. Researchers have not tested the proposed combination with HCXT-2001. [2] [5] ## Zymeworks licenses its T-cell engager to Roche Zymeworks granted Roche global rights to develop and commercialize ZW209, a trispecific T-cell engager that targets DLL3 and activates T cells through CD3 and CD28. [3] [6] ZW209 is in a Phase 1 study for small cell lung cancer and other DLL3-expressing tumors. The deal is worth up to $813 million plus royalties. [3] Zymeworks is eligible for $55 million upfront and $40 million when a Phase Ib trial begins, plus additional milestone payments and tiered royalties on future sales. [6] Zymeworks will work with Roche on the initial trial. Roche will fund it and lead later global development and commercialization. [3] [6] ## Treasury proposes limits on biotech investments abroad The US Treasury proposed adding biotechnology to the Outbound Investment Security Program under the COINS Act. The proposal would restrict some US investment in biotech firms in China and other countries of concern. [3] It covers areas such as biomanufacturing equipment, bioinformatics tools, and biological design and sequencing. [3] The proposal focuses on equity investments and joint ventures. It excludes contractual arrangements unless they involve technology transfer. [3] Comments on the proposed rule are due December 7. MassBio plans to submit comments. [3] ## The day in numbers - **$1.275 billion**: Upfront payment Gilead agreed to make for PepStar’s oral IL-23 receptor program. [1] [2] - **66% vs. 37%**: Clinical response rates at 12 weeks with high-dose emvistegrast and placebo in a Phase 2 ulcerative colitis study. [2] [5] - **Up to $813 million**: Stated maximum value of Zymeworks’ ZW209 license deal with Roche, before royalties. [3] ## Sources 1. [Limited competition behind Icotyde may help justify Gilead’s $1.3B PepStar deal](), BioCentury, 2026-10-24 2. [Gilead to Buy Oral IL-23R Peptide HCXT-2001 for $1.275 Billion](), BioPharm International, 2026-10-23 3. [The BioPharm Brief: Gilead’s Oral IL-23R Bet, Roche’s Trispecific Deal, and Treasury’s Biotech Investment Proposal](), BioPharm International, 2026-10-23 4. [Gilead spends $1.28bn on PepStar’s potential Icotyde rival ](), Pharmaceutical Technology, 2026-10-23 5. [Gilead to Pay $1.3B for Oral Peptide That Could Rival J&J’s New Immunology Pill](), MedCity News, 2026-10-23 6. [Roundup: Gilead Acquires Oral IL-23R Inhibitor From PepStar for $1.275 Billion, Zymeworks Licenses DLL3-Targeting T Cell Engager to Roche](), Pharmaceutical Executive, 2026-10-23 --- TheBench.Bio wrote this from the reporting cited above, with a language model drafting and editing. [1]: [2]: [3]: [4]: [5]: [6]: