8 January 2019 - - US-based biopharmaceutical company Gilead Sciences, Inc. (NASDAQ: GILD) and South Korea-based pharmaceutical company Yuhan Corp. (000100.KS; Yuhan) have entered into a licensing and collaboration agreement to co-develop novel therapeutic candidates for the treatment of patients with advanced fibrosis due to nonalcoholic steatohepatitis, the companies said.

Under the agreement, Gilead will acquire global rights to develop and commercialize novel small molecules against two undisclosed targets in all countries, with the exception of the Republic of Korea where Yuhan will retain certain commercialisation rights.

Yuhan and Gilead will jointly conduct preclinical research, and Gilead will be responsible for global clinical development.

Gilead will also be responsible for commercialisation worldwide, outside of Yuhan's rights in the Republic of Korea.

In connection with this agreement, Yuhan will receive an upfront payment of USD 15m and is eligible to receive up to an additional USD 770m in potential milestone payments upon achievement of certain development and commercial milestones, as well as royalties on future net sales.

This agreement builds on the companies' existing commercial collaboration to support the promotion of Gilead's medicines in the Republic of Korea.

NASH is a chronic and progressive liver disease characterized by fat accumulation and inflammation in the liver, which can lead to scarring, or fibrosis, that impairs liver function.

Individuals with advanced fibrosis due to NASH, defined as bridging fibrosis or cirrhosis, may face serious consequences, including end-stage liver disease, liver cancer and the need for liver transplantation, and are at a significantly higher risk of liver-related mortality.

Currently, patients living with NASH have limited treatment options.

Yuhan is a South Korea-based healthcare company founded in 1926.

Its core business consists of primary and specialty care, dietary supplements, household and animal care, and contract manufacturing of active pharmaceutical ingredients.

It has a number of subsidiaries and a global presence in the form of joint ventures with the Clorox company and Kimberly-Clark Corp. Yuhan (000100: KS) is a publicly-listed company traded on the Korea Stock Exchange.

Gilead Sciences is a research-based biopharmaceutical company that discovers, develops and commercialises innovative medicines in areas of unmet medical need.

The company strives to transform and simplify care for people with life-threatening illnesses around the world. Gilead has operations in more than 35 countries worldwide, with headquarters in Foster City, California.