31st May 2022 09:22
(Alliance News) - GSK PLC on Tuesday said it has agreed to buy Affinivax Inc for up to USD3.3 billion, to gain access its "highly innovative" next-generation 24-valent pneumococcal vaccine candidate.
Affinivax is a Boston, Massachusetts-based clinical-stage biopharmaceutical firm focused on developing a novel class of pneumococcal vaccines.
London-based GSK said that in addition to a USD2.1 billion initial payment, it will potentially make two milestone payments of USD600 million each, dependent on the achievement of paediatric clinical development milestones.
GSK said Affinivax was attractive for its pneumococcal vaccine candidate, as well as multiple antigen presenting system, which GSK described as novel technology.
The vaccine targets streptococcus pneumoniae, an anaerobic bacteria that can cause middle ear infections, sepsis in children and pneumonia in immunocompromised individuals.
"The proposed acquisition further strengthens our vaccines R&D pipeline, provides access to a new, potentially disruptive technology, and broadens GSK's existing scientific footprint in the Boston area," GSK's Chief Scientific Officer Hal Barron said.
GSK is one of the world's largest vaccine companies. Its vaccine business currently has a portfolio of more than 20 vaccines that are being supplied in over 160 countries. The business generated sales of GBP6.8 billion in 2021.
The deal is expected to close in the third quarter of 2022.
The FTSE 100 firm will account for the transaction as a business combination.
GSK also reaffirmed for 'new GSK' - the part remaining after the spin-off of its consumer arm - its full-year 2022 guidance and the medium-term outlook for 2021 to 2026 of more than 5% sales and 10% adjusted operating profit compound annual growth rate at constant currency.
GSK shares were trading 0.4% higher in London on Tuesday morning at 1,734.20 pence each.
By Abby Amoakuh; [email protected]
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