Gilead announced an upfront payment of $1.28 billion to PepStar Therapeutics for a Phase 1 oral IL-23 asset, extending the company’s position in inflammation. The agreement includes a China-focused expansion tied to PepStar’s early-stage program. For Gilead, the move adds to its pipeline ambitions beyond infectious disease and oncology-adjacent franchises, targeting a market where IL-23 biology remains central for inflammatory conditions. PepStar’s approach also underscores ongoing interest in oral formulations. The economics and stage at signing highlight how early assets—before pivotal trials—can attract large payments when the therapeutic target space is crowded and differentiated delivery is valued by partners.