ViiV Healthcare to Acquire Bristol-Myers Squibb’s (BMY) Investigational HIV …

23 Dec 2015 | Author: | No comments yet »

CompaniesGlaxoSmithKline in deal to bulk up HIV treatments.

GlaxoSmithKline Plc agreed to buy Bristol-Myers Squibb Co.’s portfolio of experimental HIV treatments for as much as $1.46 billion in two transactions, bolstering one of the U.K. drugmaker’s fastest-growing businesses. LONDON (Reuters) – Pharmaceutical group GlaxoSmithKline said its majority-owned HIV business would buy drugs at different stages of development from U.S. rival Bristol-Myers Squibb for an initial $350 million (£234.9 million).Glaxo said it would pay Bristol $317 million upfront for the company’s late-stage HIV drugs, plus $518 million depending on the drugs hitting particular development and commercial milestones. Glaxo’s ViiV Healthcare unit will pay $317 million in cash upfront for two drugs in late-stage development and $33 million for assets that are in the preclinical or discovery phases of research, the London-based company said in a statement today.

GSK said the acquisitions would provide ViiV Healthcare, its HIV unit in which Pfizer and Shionogi are junior partners, with new opportunities for growth. The U.K.’s largest drugmaker may also give $518 million plus royalties if the late-stage medicines reach certain milestones, and $587 million in additional payments for the early-stage drugs if they meet targets. It used to dominate the market but ViiV’s 2014 sales of 1.5 billion pounds ($2.3 billion) were less than a quarter of the HIV revenue generated by market leader Gilead Sciences . The transactions for the two sets of assets are likely to be completed in the first half of next year. “The agreements with ViiV Healthcare now put the development of these potentially first-in-class compounds into the hands of a global specialist company exclusively dedicated to finding new medicines for people living with HIV,” said Chief Scientific Officer Francis Cuss.

That status is given to drugs that treat life-threatening or extremely serious conditions for which there is currently no treatment, and accelerates the development and review process. David Redfern, chief strategy officer at GSK and chairman of ViiV Healthcare, said the deals will strengthen the company’s “leadership” in the area of HIV treatments.

The late-stage assets acquired by Glaxo included fostemsavir, a medicine for difficult-to-treat patients that has breakthrough therapy designation from the U.S.

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