GSK, a prominent British pharmaceutical company, has announced its acquisition of biopharmaceutical company Aiolos Bio for a staggering $1.4 billion. This strategic move allows GSK to bolster its respiratory pipeline and aligns with the recent trend of pharmaceutical giants acquiring rapidly growing biotechs to strengthen their portfolios.
Aiolos Bio, headquartered in both San Francisco and London, focuses its efforts on treating patients with respiratory and inflammatory conditions. As part of the deal, GSK will gain access to AIO-001, an antibody that is currently in Phase 2 development for the treatment of certain respiratory and inflammatory conditions in adult patients.
Chief Scientific Officer Tony Wood expressed his optimism regarding the portfolio addition, stating that it has the potential to extend the reach of GSK’s current respiratory biologics portfolio. He specifically highlighted the opportunity to address the needs of the 40% of severe asthma patients with low type 2 inflammation who are still in search of effective treatment options.
To acquire Aiolos Bio, GSK will make an upfront payment of $1 billion, with an additional payment of up to $400 million contingent upon meeting certain regulatory milestones.
In parallel news, it has been reported by The Wall Street Journal that Novartis is nearing a deal to acquire Cytokinetics, a biotech company known for its promising heart drug. The specifics of this potential acquisition, such as the price and terms, have not been disclosed.
The pharmaceutical industry has seen a flurry of merger activity recently, with many giants like AbbVie and Bristol engaging in strategic acquisitions. Notably, AbbVie has made two recent acquisitions, and Bristol recently announced its $14 billion acquisition of Karuna Therapeutics.
Earlier this year, GSK finalized its acquisition of Bellus Health Inc., a late-stage biopharmaceutical company, for approximately $2.0 billion.