GSK Acquires Boston Pharmaceuticals Liver Disease Drug Asset For $2 Billion

GSK, one of the UK’s leading pharmaceutical companies, has committed up to $2 billion to acquire a promising new liver disease drug from Boston Pharmaceuticals. The latest acquisition aims to bolster GSK’s biopharma pipeline as it targets group revenues of over £40 billion by 2031.

The drug, efimosfermin, is set to enter late-stage clinical trials and is being developed as a once-monthly injection. It addresses steatotic liver disease, a condition caused by fat accumulation in the liver, leading to inflammation and fibrosis. Unlike daily oral treatments, a monthly injection offers greater convenience for patients, potentially improving adherence rates. The drug also holds potential as a treatment for alcohol-related liver disease.

Under the deal, GSK will pay $1.2 billion upfront, with additional milestone payments of up to $800 million. Royalties and milestones are also due to Novartis, the Swiss pharmaceutical company that originally developed the drug. Analysts have welcomed the move, citing efimosfermin as a possible “best-in-class” treatment opportunity with a first launch expected by 2029.

GSK’s chief scientific officer, Tony Wood, stated, “Efimosfermin will significantly expand our hepatology pipeline and provide the chance to develop a new, potential best-in-class medicine to combat advanced liver disease.” With steatotic liver disease affecting 5 per cent of the global population and alcohol-related liver disease impacting an estimated 26 million patients, the demand for effective treatments remains significant.

The acquisition is GSK’s third bolt-on deal this year, following its purchase of rare cancer treatment company IDRx for up to $1.15 billion in January. Since the separation of its consumer healthcare business Haleon three years ago, GSK has redirected focus towards core biopharma research. Investment in R&D has risen by nearly 90 per cent, reaching £6 billion.

The potential financial and societal impact of efimosfermin cannot be understated. GSK estimates that interventions preventing liver disease progressions, such as cirrhosis and liver cancer, could save the US healthcare system between $40 billion and $100 billion over the next 20 years. Notably, the US remains GSK’s largest market, generating more than half of the company’s £31.4 billion revenue last year.

Despite positive sentiment around this acquisition, analysts have noted the competitive landscape within the steatotic liver disease treatment market. The onus now lies on GSK to differentiate efimosfermin as a “best-in-class” drug that stands out among competitors.

As GSK continues its strategy to revitalise its biopharma pipeline, the company has identified 14 key projects expected to launch before 2031, with each having peak-year sales potential exceeding £2 billion. While there are risks associated with developing third-party assets, this acquisition marks another step forward in GSK’s ambitious transformation plan under the leadership of CEO Dame Emma Walmsley.