UK pharma giant GSK Plc (GSK) announced an agreement to acquire 35Pharma, a Canada-based biopharmaceutical company with an early-stage high blood pressure drug. The company is making this acquisition for $950 million in cash.
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GSK Enhances Business with 35Pharma and Other Strategic Deals
Through this deal, GSK will acquire 35Pharma’s in-development drug HS235 to treat pulmonary arterial hypertension (PAH), a life-shortening disease marked by high blood pressure in the lungs, and pulmonary hypertension due to heart failure with preserved ejection fraction (PH-HFpEF).
The company expects this drug to offer new development opportunities within its Respiratory, Immunology, and Inflammation portfolio, with the potential to “achieve broader coverage across the metabolic, inflammatory, vascular and fibrotic drivers of multiple chronic diseases that affect the lung, liver and kidney.”
GSK has been bolstering its business with strategic acquisitions to mitigate the impact of the patent expiration of its blockbuster HIV drug, dolutegravir. In January, the company announced the $2.2 billion acquisition of RAPT Therapeutics (RAPT). Earlier this week, GSK announced a $1 billion licensing deal to obtain global rights to develop Frontier Biotechnologies’ two small interfering RNA therapies targeting kidney diseases.
Is GSK Stock a Buy, Sell, or Hold?
Wall Street has a Hold consensus rating on the U.S.-listed shares of GSK based on three Holds, one Buy, and two Sell recommendations. The average GSK stock price target of $47.21 indicates 20.2% downside risk. Shares have risen more than 54% over the past year.
