GSK seeks to boost oncology repertoire with $5.1bn acquisition
GSK has agreed to buy US oncology company Tesaro for $5.1 billion (£4 billion), in a move designed to strengthen its anti-cancer offering.
The UK-headquartered drugs maker announced the deal today, December 3.
In the statement, GSK highlighted Tesaro’s marketed product Zejula (niraparib), an oral poly ADP ribose polymerase (PARP) inhibitor approved to treat ovarian cancer. GSK said that PARP inhibitors are transforming the treatment of ovarian cancer, “notably demonstrating marked clinical benefit in patients with and without germline mutations in a BRCA gene (gBRCA)”.
Zejula is approved in the US and Europe, and studies on the drug’s potential use continue. According to the statement, GSK believes PARP inhibitors offer significant opportunities in the treatment of multiple cancers, including lung, breast and prostate.
The statement said that Zejula’s revenues, in its current approved indication as second-line maintenance treatment for ovarian cancer, were $166 million for the nine months ending September 30, 2018.
Emma Walmsley, GSK’s CEO, said the acquisition will strengthen the company’s pharmaceuticals business by accelerating the build of its oncology pipeline and commercial footprint, along with providing access to new scientific capabilities.
“This combination will support our aim to deliver long-term sustainable growth and is consistent with our capital allocation priorities,” she added.
For Hal Barron, chief scientific officer at GSK, PARP inhibitors are important medicines that have been under appreciated in terms of their potential impact on cancer patients. GSK is optimistic that Zejula will demonstrate benefit in patients with ovarian cancer beyond those who are BRCA-positive, he added.
Tesaro’s CEO, Lonnie Moulder, confirmed that the board and management team are “very pleased to announce this transaction, and we are grateful to the management team at GSK for their tremendous vision”.
Finally, the statement said that GSK is in discussions with “several key executives” of Tesaro to ensure their continued employment with the company.
The acquisition is not the only major development on the mergers and acquisitions front for GSK this year.
As reported by LSIPR in June, GSK confirmed that its $13 billion buyout of Novartis from the companies’ consumer healthcare joint venture had been completed following approval from shareholders.
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