The deal will give Gilead access to CymaBay's lead drug candidate called seladelpar for the treatment of primary biliary cholangitis, a type of chronic inflammatory liver disease.

CymaBay had submitted a marketing application to the U.S. Food and Drug Administration (FDA) for the drug in December.

Shares of CymaBay were halted ahead of the announcement in premarket hours.

(Reporting by Bhanvi Satija in Bengaluru; Editing by Krishna Chandra Eluri)