UNITED KINGDOM —GSK has acquired the rights to Arrowhead Pharmaceutical’s hepatitis B candidate, JNJ-3989, originally part of the ARO-HBV program and initially in-licensed by J&J’s Janssen Pharmaceuticals in 2018.
This strategic agreement grants GSK worldwide exclusive rights to the RNAi-based therapeutic, designed as a curative therapy for chronic hepatitis B.
Under the terms of this deal, GSK will also inherit the responsibilities outlined in the original license agreement between Arrowhead and Janssen, including financial obligations, such as upfront and milestone payments totaling approximately US$1 billion.
Furthermore, GSK is committed to continuing the candidate’s trials, bearing the associated development and commercialization costs.
This acquisition positions GSK to explore the potential of combining JNJ-3989 with bepirovirsen, its investigational oligonucleotide aimed at non-cirrhotic adults with chronic hepatitis B.
Dr. Tony Wood, Chief Scientific Officer at GSK, shared the company’s enthusiasm for this endeavor, stating, “We are excited to build on promising results already demonstrated with bepirovirsen to investigate a novel sequential regimen with JNJ-3989.
“We believe this approach could redefine the treatment paradigm for chronic hepatitis B by helping even more patients achieve functional cure.”
The original 2018 agreement had seen Arrowhead receive a substantial upfront payment of US$175 million, a US$75 million equity investment by Johnson & Johnson Innovation, and milestone payments of approximately US$1.6 billion for the licensing agreement.
Additionally, Arrowhead was eligible for royalties in the mid-teens on product sales as part of the Janssen deal.
This isn’t the first collaboration between GSK and Arrowhead. In 2021, GSK invested US$120 million upfront to develop and commercialize Arrowhead’s RNAi drug for treating nonalcoholic steatohepatitis.
In a related development, Janssen recently ended its collaboration with Bavarian Nordic in May 2023, signaling a shift in its partnerships to develop vaccines for hepatitis B and human papillomavirus.
Meanwhile, GSK’s RSV vaccine, Arexvy, continues to make waves, outperforming its Pfizer rival, Abrysvo, in the third quarter.
Arexvy’s impressive sales of £709 million (US$860 million) during this period far exceeded expectations, raising GSK’s full-year profit and sales forecasts.
This RSV vaccine has become a pivotal asset for GSK as it grapples with patent expiries and declining revenues from its current bestsellers.
With close to two-thirds of RSV doses administered in the United States since September, GSK’s Arexvy has proven to be a blockbuster contender.
The company’s renewed focus on vaccines and infectious diseases, following the spin-off of its consumer healthcare business last year, has garnered positive sentiment from investors and analysts.
Furthermore, Arexvy’s exclusive distribution by CVS, the largest U.S. pharmacy chain, provides GSK with a competitive edge over Pfizer’s Abrysvo in the RSV vaccine market.
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