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GSK Inks $2B Deal With Boston Pharmaceuticals to Buy Liver Disease Drug
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GSK plc (GSK - Free Report) announced that it has signed an agreement with Massachusetts-based biopharmaceutical company Boston Pharmaceuticals to acquire the latter’s lead pipeline drug, efimosfermin alfa.
Efimosfermin is an investigational long-acting variant of FGF21 protein designed to treat and prevent the progression of steatotic liver disease (SLD), commonly known as fatty liver disease. Boston Pharma is currently evaluating the drug in mid-stage studies for metabolic dysfunction-associated steatohepatitis (MASH), a form of SLD. The drug was originally licensed by Boston Pharma from Novartis (NVS - Free Report) in 2020.
GSK believes that efimosfermin has the potential to address more advanced stages of SLD, including alcohol-related liver disease (ALD). It plans to develop it as a monotherapy as well as in combination with its own investigational siRNA therapeutic, GSK’990, also being developed in mid-stage studies for SLD.
The company’s decision to acquire efimosfermin stems from recently reported mid-stage data that has demonstrated the drug’s potential to reverse liver fibrosis and halt disease progression in MASH patients. GSK believes that the drug could become the new standard-of-care for MASH, with an option for monthly dosing. It expects a commercial launch for this drug in 2029.
Per the terms of the deal, GSK will pay $1.2 billion as an upfront payment to Boston Pharma. The Massachusetts-based company will also be eligible to receive up to $800 million in potential milestone payments. GSK will be responsible for making ‘success-based’ milestone payments and tiered royalties to Novartis.
GSK Stock’s Performance
Year to date, shares of GSK have gained 7% against the industry’s 8% decline.
Image Source: Zacks Investment Research
What is GSK’s Intent Behind the Deal?
Through this deal, GSK intends to expand its pipeline, as some of its key drugs are nearing the end of their exclusivity period. The patent on the dolutegravir HIV franchise expires in the 2028-2029 period.
As part of its long-term outlook, the company expects to generate sales of more than £40 billion by 2031. To meet this goal, GSK is focusing on HIV, immunology/respiratory and oncology therapeutic areas. Currently, the company has 18 candidates that are either in late-stage development or under regulatory review.
This year, GSK expects to launch five new products or line extensions. The FDA has already approved two products — Blujepa (for uncomplicated urinary tract infection) and Penmenvy (the 5-in-1 meningococcal vaccine) — during the first quarter of 2025. Regulatory decisions on the remaining three — Blenrep (relaunch in multiple myeloma), depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) and Nucala (for COPD) — are pending. Final decision on these candidates is expected throughout 2025.
GSK, iTeos End Anti-TIGIT Drug Development
In a separate press release, the company announced that it is ending the development of the anti-TIGIT antibody belrestotug, which was being developed in collaboration with iTeos Therapeutics (ITOS - Free Report) .
This decision is based on interim analysis, which GSK said ‘did not meet the established efficacy criteria for continued development.’ Both GSK and iTeos will be ending all belrestotug-related studies, including a late-stage study that was currently enrolling study participants.
The development marks a setback for GSK’s oncology ambitions. The company had spent $625 million as an upfront payment to iTeos Therapeutics in 2021 for rights to the drug.
Image: Bigstock
GSK Inks $2B Deal With Boston Pharmaceuticals to Buy Liver Disease Drug
GSK plc (GSK - Free Report) announced that it has signed an agreement with Massachusetts-based biopharmaceutical company Boston Pharmaceuticals to acquire the latter’s lead pipeline drug, efimosfermin alfa.
Efimosfermin is an investigational long-acting variant of FGF21 protein designed to treat and prevent the progression of steatotic liver disease (SLD), commonly known as fatty liver disease. Boston Pharma is currently evaluating the drug in mid-stage studies for metabolic dysfunction-associated steatohepatitis (MASH), a form of SLD. The drug was originally licensed by Boston Pharma from Novartis (NVS - Free Report) in 2020.
GSK believes that efimosfermin has the potential to address more advanced stages of SLD, including alcohol-related liver disease (ALD). It plans to develop it as a monotherapy as well as in combination with its own investigational siRNA therapeutic, GSK’990, also being developed in mid-stage studies for SLD.
The company’s decision to acquire efimosfermin stems from recently reported mid-stage data that has demonstrated the drug’s potential to reverse liver fibrosis and halt disease progression in MASH patients. GSK believes that the drug could become the new standard-of-care for MASH, with an option for monthly dosing. It expects a commercial launch for this drug in 2029.
Per the terms of the deal, GSK will pay $1.2 billion as an upfront payment to Boston Pharma. The Massachusetts-based company will also be eligible to receive up to $800 million in potential milestone payments. GSK will be responsible for making ‘success-based’ milestone payments and tiered royalties to Novartis.
GSK Stock’s Performance
Year to date, shares of GSK have gained 7% against the industry’s 8% decline.
Image Source: Zacks Investment Research
What is GSK’s Intent Behind the Deal?
Through this deal, GSK intends to expand its pipeline, as some of its key drugs are nearing the end of their exclusivity period. The patent on the dolutegravir HIV franchise expires in the 2028-2029 period.
As part of its long-term outlook, the company expects to generate sales of more than £40 billion by 2031. To meet this goal, GSK is focusing on HIV, immunology/respiratory and oncology therapeutic areas. Currently, the company has 18 candidates that are either in late-stage development or under regulatory review.
This year, GSK expects to launch five new products or line extensions. The FDA has already approved two products — Blujepa (for uncomplicated urinary tract infection) and Penmenvy (the 5-in-1 meningococcal vaccine) — during the first quarter of 2025. Regulatory decisions on the remaining three — Blenrep (relaunch in multiple myeloma), depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) and Nucala (for COPD) — are pending. Final decision on these candidates is expected throughout 2025.
GSK, iTeos End Anti-TIGIT Drug Development
In a separate press release, the company announced that it is ending the development of the anti-TIGIT antibody belrestotug, which was being developed in collaboration with iTeos Therapeutics (ITOS - Free Report) .
This decision is based on interim analysis, which GSK said ‘did not meet the established efficacy criteria for continued development.’ Both GSK and iTeos will be ending all belrestotug-related studies, including a late-stage study that was currently enrolling study participants.
The development marks a setback for GSK’s oncology ambitions. The company had spent $625 million as an upfront payment to iTeos Therapeutics in 2021 for rights to the drug.
GSK PLC Sponsored ADR Price
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GSK’s Zacks Rank
GSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.