Glaxo snaps up £1.6bn Canadian drug maker Bellus Health
Glaxo raises £1.6 billion from Canadian drugmaker Bellus Health in its biggest deal since Haleon split
GSK has acquired a Canadian drugmaker in the largest deal since it spun off from its consumer health arm Haleon last summer.
The FTSE 100 pharma giant bought Bellus Health, based in the Quebec City of Laval, for £1.6 billion in cash.
It works out to about $14.75 for each Bellus share, more than double Monday’s closing price on Wall Street.
At the helm: The attack on Bellus is GSK’s biggest takeover since its split from Haleon last July as part of a strategy by boss Emma Walmsley (pictured)
Bellus is developing camlipixant, a specialty drug designed to help people suffering from chronic cough, a condition that affects approximately 10 million people worldwide, according to GSK.
Camlipixant is in an advanced clinical trial, with GSK’s chief commercial officer Luke Miels saying the drug has the potential to become a “best-in-class treatment with significant sales potential.”
He added that the acquisition would complement the company’s existing portfolio of respiratory medicines, including the severe asthma drug Nucala, which generated sales of £1.4bn last year.
The purchase of Bellus is expected to close in the third quarter of this year and will contribute to the company’s earnings starting in 2027.
GSK shares fell 1.8 percent, or 27.8p, to 1484p.
The attack on Bellus is the company’s biggest acquisition since it spun off Haleon last July as part of a strategy by GSK boss Emma Walmsley to focus on new and profitable drugs to treat cancer and other diseases, after years of criticism. on performance.
It also follows last year’s purchase of cancer drugmaker Sierra Oncology and vaccine maker Affinivax for £1.5bn and £2.7bn respectively.
But the pharmaceutical giant faces an uphill battle with many of its rivals, who are also looking for promising pharmaceutical companies and have bigger cash piles to tap.
Earlier this week, German pharmaceutical group Merck bought US drugmaker Prometheus Biosciences for £8.7 billion.
Last month, US giant Pfizer acquired cancer group Seagen in a £35bn deal, the industry’s largest acquisition in four years.