GSK GSK plc

By Christian Moess Laursen

GSK is buying biopharmaceutical company Aiolos Bio for up to $1.4 billion in a deal that expands its respiratory pipeline and follows a string of pharmaceutical majors buying fast-growing biotechs to restock their pipelines.

The British pharmaceutical giant said Tuesday that the deal to buy San Francisco and London-based Aiolos Bio, which focuses on patients with respiratory and inflammatory conditions, includes a Phase 2-ready antibody called AIO-001 for the treatment of adult patients with certain respiratory and inflammatory conditions.

The portfolio addition "could expand the reach of our current respiratory biologics portfolio, to the 40% of severe asthma patients with low type 2 inflammation where treatment options are still needed," Chief Scientific Officer Tony Wood said.

GSK is making an upfront payment of $1 billion with a further payment of up to $400 million dependent on certain regulatory milestones being met, it said.

The Wall Street Journal reported Monday that Novartis is close to clinching an acquisition of Cytokinetics and its promising heart drug, citing people familiar with the situation. The potential price and other terms couldn't be learned.

A deal for Cytokinetics would be the latest in a flurry of merger activity involving pharmaceutical giants snapping up biotechnology companies. AbbVie inked two recent acquisitions, and Bristol outlined a number of deals, including its $14 billion acquisition of Karuna Therapeuticsno.

In June, GSK completed its acquisition of late-stage biopharmaceutical company Bellus Health Inc. for around $2.0 billion.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

January 09, 2024 03:20 ET (08:20 GMT)

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