GSK to Acquire Aiolos Bio for $1.4 Billion to Strengthen Respiratory Pipeline with TSLP Antibody AIO-001

Intelligent Finance APP learned that GlaxoSmithKline (GSK.US) will acquire Aiolos Bio for an upfront payment of $1 billion and milestone payments of up to $400 million. Through the acquisition, GlaxoSmithKline obtained Aiolos'Respiratory System DrugsAIO-001。

GSK said Tuesday that Aiolos’ experimental drug is ready to enter mid-stage testing in adults with asthma, even though the monoclonal antibody also shows potential in other inflammation-related conditions such as chronic sinusitis and nasal polyps.

After CEO Emma Walmsley stated she was looking for acquisitions in areas such as infectious diseases and cancer, GSK moved quickly to strengthen its product pipeline. The company raised its profit and sales forecasts for the second time in November due to surging demand for its vaccine that prevents a common respiratory virus.

GSK to pay $1 billion upfront, with the remainder tied to potential regulatory milestones. The company will also be responsible for making success-based payments and paying tiered royalties to Jiangsu Hengrui Pharmaceuticals Co., Ltd. Jiangsu Hengrui PharmaceuticalsAiolos Bio has obtained the license for its key drug, AIO-001.

WalmsleyShe said on Monday that she is focusing on deals that can expand the company's existing channels.GSKIs exploring multiple development areas to prepare for the loss of exclusivity for some of its best-selling drugs, including a key HIV treatment.

Walmsley"I'm very pleased with the progress we've made at this stage over the past five years," he said in an interview at the J.P. Morgan Healthcare Conference in San Francisco.