British pharmaceutical giant GSK has struck a significant deal worth up to $1.15 billion to acquire IDRx, a Massachusetts-based biopharmaceutical company, strengthening its position in the oncology sector.
The FTSE 100-listed company will pay $1 billion upfront with an additional $150 million earmarked for milestone achievements. The strategic move aligns with GSK’s ambitious target to boost group revenues by 25% as we enter the next decade.
The acquisition grants GSK access to IDRx’s pioneering molecule development programme, specifically targeting rare gastrointestinal stromal tumours. Luke Miels, GSK’s chief commercial officer, emphasised that this purchase complements their existing gastrointestinal cancer portfolio whilst addressing critical unmet medical needs.
More than 75% of these tumour cases are driven by specific gene mutations, with current treatments failing to inhibit the complete spectrum of primary and secondary mutations. Tony Wood, GSK’s chief scientific officer, highlighted the unique potential of IDRx’s lead asset to fill this significant treatment gap.
The deal represents a crucial expansion of GSK’s oncology business under Dame Emma Walmsley’s leadership since 2017. IDRx, supported by prominent investors including Blackstone and Andreessen Horowitz, secured $120 million in funding last August.
The announcement coincides with the JP Morgan healthcare conference in San Francisco, where Dame Walmsley is scheduled to speak. Despite this strategic advancement, GSK’s shares closed down 18½p at £13.31, marking a nearly 16% decline over the past year.
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