Gilead is to acquire Arresto Biosciences, a company developing treatments for fibrotic diseases and cancer with a $225 million deal, which also includes future payments related to the achievement of certain sales levels.

The three-year-old company’s lead product is AB0024, which has been through Phase I trials for idiopathic pulmonary fibrosis. The fully-humanized monoclonal antibody is also in early-stage clinical trials for the treatment of advanced solid tumors.

“Arresto’s research and development expertise is well aligned with Gilead’s areas of focus, including our ongoing clinical program for ambrisentan in IPF,” said Gilead research chief Norbert Bischofberger. “We look forward to working with the team from Arresto to advance the development of novel therapies for serious fibrotic diseases and explore their potential for the treatment of tumors.” The all-cash deal is expected to close in the first quarter of 2011.