18th Apr 2023 09:13
(Alliance News) - GSK PLC on Tuesday announced it has agreed to acquire Quebec-based late-stage biopharmaceutical firm Bellus Health Inc for a total equity value of USD2.0 billion.
The USD14.75 per-share price of the acquisition is just over double Bellus's closing stock price of USD7.06 in New York on Monday, as well as its volume-weighted average price over the last 30 trading days.
Bellus is currently trading 98% higher at USD14.40 in the New York pre-market on Tuesday. It has a market capitalisation of USD919.6 million, compared to GSK's market capitalisation of GBP61.71 billion, or around USD76.72 billion.
GSK said the acquisition will give it access to Bellus's camlipixant, a highly selective P2X3 antagonist currently in phase three development for the first-line treatment of adult patients with refractory chronic cough.
Chief Commerical Officer Luke Miels explained: "Patients suffering from severe forms of refractory chronic cough can experience over 900 coughs daily, resulting in quality-of-life issues. Camlipixant, a novel, highly selective P2X3 antagonist, has the potential to be a best-in-class treatment with significant sales potential. This proposed acquisition complements our portfolio of specialty medicines and builds on our expertise in respiratory therapies."
Camlipixant is not currently approved anywhere in the world.
Following the anticipated regulatory approval and launch of camlipixant in 2026, GSK said the acquisition is expected to be accretive to adjusted earnings per share from 2027. The firm added it will also have the potential to deliver "significant" sales through 2031 and beyond.
The London-based pharmaceutical company said there is no change to its full-year guidance or its medium-term outlook until 2026 of more than 5% compound annual growth rate in sales.
The acquisition is subject to the approval of at least 67% of the votes at a meeting of Bellus shareholders, as well as a majority of the votes cast by non-interest shareholders at a meeting and regulatory agencies. It is expected to close in the third quarter of 2023, or earlier.
The Bellus board of directors has unanimously recommended that Bellus shareholders vote in favour of the acquisition.
Shares in FTSE 100-listed GSK were down 0.5% at 1,505.00 pence on Tuesday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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