UNITED KINGDOM — In a move to expand its focus on respiratory therapies, British pharmaceutical giant GlaxoSmithKline (GSK) has announced its intention to purchase Bellus Health Inc., a Canadian drug developer, for an all-cash deal valued at US$2 billion.
The acquisition will enable GSK to replenish its pipeline and maintain its momentum, as investors express concern about the potential loss of patent protection for one of the company’s key compounds.
At the heart of the deal is Camlipixant, an experimental drug currently in late-stage development for refractory chronic cough (RCC).
Camlipixant works by blocking a receptor known as P2X3, which has been linked to hypersensitivity in the cough reflex. As of now, the drug is undergoing Phase 3 testing.
Patients suffering from refractory chronic cough may experience more than 900 coughs a day, as noted by Luke Miels, GSK’s chief commercial officer.
This condition affects approximately 10 million patients worldwide for more than a year, with no approved therapies currently available in the United States and Europe.
The acquisition of Bellus will allow GSK to expand its research and development efforts in this area and potentially provide relief to these patients.
GSK’s offer of US$14.75 per share represents a significant increase from Bellus’ closing price of US$7.26 on the Nasdaq on Monday, reflecting the company’s strong interest in the development of camlipixant and the potential for the drug to address a significant unmet medical need.
GlaxoSmithKline’s acquisition of Bellus Health will enable the company to expand its existing respiratory portfolio, which includes Nucala and Trelegy, and generated more than a combined 3 billion pounds (US$3.73 billion) last year.
The addition of Bellus’ camlipixant, which is in late-stage development for refractory chronic cough, will provide GSK with a promising new treatment for respiratory ailments.
Camlipixant will face competition from Merck’s gefapixant, which was recently denied approval by the US regulator due to concerns about its effectiveness, though Merck is expected to resubmit an application for another review later this year.
Investors have expressed concern about GSK’s future plans, particularly in light of the potential loss of patent protection in 2027 for dolutegravir, which forms part of four of GSK’s HIV treatments and accounts for over 5 billion pounds (US$6.23 billion) of sales.
GSK is looking to offset this loss with its vaccine targeting the respiratory syncytial virus (RSV), which causes thousands of hospitalizations and deaths each year.
The company has also made a series of deals, including the acquisition of Affinivax and Sierra Oncology, to plug the gap.
Despite these efforts, GSK has experienced setbacks in its marketed cancer drug portfolio, and demand for its flagship blockbuster vaccine, Shingrix, is expected to eventually saturate.
GSK’s chief commercial officer, Luke Miels, acknowledged the importance of deals like Bellus in bridging the gap and maintaining the company’s growth trajectory in the second half of the decade.
While GSK has culled a handful of programs from its pipeline in recent months, the Bellus acquisition is a promising step forward in expanding its respiratory portfolio and maintaining its momentum.
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