UK-based GSK is set to acquire Affinax in a bid to push its vaccine program forward.
GSK announced earlier on Tuesday that it has agreed to acquire United States-based Affinivax. The deal is expected to be worth around $3.3 billion.
Affinivax is a clinical-stage biopharmaceutical company with a next-generation vaccine technology platform called the Multiple Antigen Presentation System (MAPS).
This latest acquisition is the second major deal for GSK in two months, giving the British pharmaceutical company access to Affinivax’s roster of next-generation vaccines.
GSK is one of the leading vaccine manufacturers in the world. However, the company has been under pressure to expand its pharmaceutical business ahead of the separation of its consumer business in two months. GSK is popular for manufacturing products such as Sensodyne toothpaste and Advil painkillers.
GSK’s newer shingles vaccine has led to an increase in growth as demand returns following the disruption to immunisations during the pandemic.
Despite the recovering demand, GSK needs a new product to ensure that its vaccine business performs excellently over the next few months. GSK’s vaccine business generated 6.78 billion pounds ($8.54 billion) in 2021.
The British company is facing competition from its American rivals, including Pfizer and Moderna, in the use of newer mRNA technology.
According to the terms of the deal, GSK will pay Affinivax $2.1 billion upfront and up to $1.2 billion in potential milestones.
The deal comes a month after GSK announced it had acquired Sierra Oncology for $1.9 billion. At the time, GSK said it had an appetite for further deals as it planned to expand its pharmaceutical business.
Affinivax is a private company that focuses on vaccine development. At the moment, some of its vaccines under development include those for pneumococcal diseases, such as pneumonia, meningitis, bloodstream infections and sinusitis.
Affinivax’s newer vaccine technology helps to strengthen the breadth of immunity against a pathogen, ensuring that an immune-boosting adjuvant is not necessary.