GSK agreed to buy US biotech IDRx for as much as US$1.15 billion to gain new cancer medicines.
The UK drugmaker will pay US$1 billion upfront for IDRx, whose lead drug for gastrointestinal tumours shows potential against mutations that currently leave patients with few treatment options, GSK said on Monday (Jan 13).
IDRx’s experimental medicine has shown activity against mutations that drive most of the cases of gastrointestinal stromal tumours and could offer the first significant treatment advance in the field in almost 20 years, the companies said.
GSK shares were little changed in early London trading, as they have been since the start of the year.
Investors are concerned about GSK’s pipeline and recent lower-than-expected sales of its RSV and shingles vaccines. The bright light has been some unexpected successes in cancer. Typically, a smaller player in this space, GSK has been slowly working to expand its oncology capabilities.
The company aims to bring previously withdrawn blood cancer drug Blenrep back to market and has seen strong sales of another cancer medicine, called Ojjaara.
The GSK announcement, on the day the annual JPMorgan investor conference kicks off, confirms earlier reports about the transaction. IDRx may get an additional US$150 million in success-based milestone payments.
Gastrointestinal stromal tumours are a type of cancer that begins in the digestive system and can cause vomiting, fatigue and abdominal pain.
IDRx launched in 2022 with licence agreements with Germany’s Merck KGaA and Blueprint Medicines. IDRx’s leading medicine was part of the Merck deal. Under Monday’s agreement, GSK will have to pay success-based milestone payments and tiered royalties owed to Merck. BLOOMBERG
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