GSK said Tuesday it will buy Boston-based clinical-stage biotech company Affinivax in a deal worth up to $3.3 billion as it looks to bolster its vaccine pipeline ahead of the planned separation of its consumer healthcare business.
The U.K. drugmaker will make an upfront payment of $2.1 billion and up to $1.2 billion in potential development milestones, GSK (ticker: GSK) said in a statement. The deal is expected to close in the third quarter of 2022.
Affinivax is developing next-generation vaccines, GSK said, adding that the most advanced are for pneumococcal diseases, including pneumonia, meningitis and milder ones such as sinusitis.
GSK also reaffirmed its full-year 2022 guidance and the medium-term outlook for 2021 to 2026 of more than 5% sales and 10% adjusted operating profit compound annual growth rate at constant currency.
Shares of GSK edged 0.4% higher in London trading on Tuesday. The stock has risen 7.9% in 2022. American depositary receipts of GSK rose 0.2% in U.S. premarket trading Tuesday.
Comments