GSK to acquire IDRx for $1B upfront

GSK (GSK) and IDRx announced that they have entered into an agreement under which GSK will acquire IDRx. Under the agreement, GSK will pay $1B upfront, with potential for an additional $150M success-based regulatory approval milestone payment. The acquisition includes molecule, IDRX-42, a selective KIT TKI being developed as a first- and second-line therapy for the treatment of GIST. IDRX-42 has demonstrated activity against all key primary and secondary KIT mutations, designed to improve outcomes for patients with GIST. Under the terms of the agreement, GSK will acquire one hundred percent of the outstanding equity interests in IDRx for up to $1.15B of total cash consideration, comprising an upfront payment of $1B with potential for an additional $150M success-based regulatory approval milestone payment. GSK will also be responsible for success-based milestone payments as well as tiered royalties for IDRX-42 owed to Merck KGaA, Darmstadt, Germany. This transaction is subject to customary conditions, including applicable regulatory agency clearances under the Hart-Scott-Rodino Act in the US.