The FTSE 100-listed GlaxoSmithKline PLC (GB:GSK) announced today the acquisition of Aiolos Bio for $1.4 billion in a move to enhance its respiratory portfolio. The deal includes an initial payment of $1 billion and an additional amount of $400 million contingent on regulatory milestones in the future. GSK shares were trading up by 1.08% as of writing.
GSK is a global pharmaceutical company operating in three segments: Vaccines, Specialty Medicines, and General Medicines.
GSK Boosts its Respiratory Portfolio
Aiolos Bio specializes in the treatment of respiratory diseases and various immune conditions. It is currently developing a monoclonal antibody, AIO-001, which is entering phase 2 clinical trials. The application of AIO-001 extends beyond asthma patients, with the potential to treat additional conditions like chronic rhinosinusitis with nasal polyps. This underscores the drug’s potential in a global market where more than 315 million individuals are living with asthma.
This acquisition also aligns with a trend among pharmaceutical giants to acquire rapidly growing smaller biotech firms to strengthen their pipeline.
According to GSK’s Chief Scientific Officer, Tony Wood, the inclusion of AIO-001 will broaden the scope of the company’s existing respiratory biologics portfolio. It will also expand the reach of the treatment to the “40% of severe asthma patients with low T2 inflammation where treatment options are still needed.”
Founded in 2023, Aiolos secured $245 million in financing from investors such as Atlas Venture and Bain Capital Life Sciences.
Is GSK a Good Stock to Buy?
According to the consensus on TipRanks, GSK stock has received a Hold rating. This rating is backed by four Buy, three Hold, and three Sell recommendations. The GSK share price forecast is set at 1,569.13p, which is almost similar to the current trading price.
