GSK to acquire Affinivax for $2.1B upfront to bolster vaccine portfolio
GSK (NYSE:GSK) is acquiring Cambridge, Mass.-based pneumococcal vaccine maker Affinivax for a $2.1B upfront and up to $1.2B in potential development milestone payments.
Pneumococcal diseases include pneumonia, meningitis, bloodstream infections, sinusitis and otitis media, among others.
The British pharma giant said the acquisition will give it access to Affinivax's most advanced vaccine candidate AFX3772, which includes 24 pneumococcal polysaccharides plus two conserved pneumococcal proteins (compared to up to 20 serotypes in currently approved vaccines).
AFX3772, which has undergone phase 1/2 trials in adults, had received the U.S. Food and Drug Administration's breakthrough therapy designation to prevent S. pneumoniae invasive disease and pneumonia in adults 50 years and above.
Affinivax plans to begin a phase 1/2 trial of the vaccine in children later this year.
"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," said Dr Hal Barron, chief scientific officer and president R&D, GSK.
Under the agreement, GSK will acquire 100% of the outstanding shares of Affinivax. GSK will pay $2.1B upon closing and two potential milestone payments of $0.6B upon the achievement of certain pediatric clinical development milestones.
The transaction, which is expected in Q3, is subject to conditions, including U.S. anti-trust clearance.
GSK said it will account for the transaction as a business combination.
The company added that new GSK reaffirms its full-year 2022 guidance and the medium-term outlook for 2021-2026 of more than 5% sales and 10% adjusted operating profit CAGR at CER.