GSK Shares (LON: GSK) Move Green YTD on $1.2B Drug Acquisition

GSK's shares (LON: GSK) are up 1.1% in early London trading, moving back into positive territory on a YTD basis. The move comes as the company announced its agreement to acquire a phase III-ready liver disease drug, efimosfermin alfa, from Boston Pharmaceuticals. This significant acquisition is valued at $1.2 billion upfront, with an additional $800 million potentially payable upon the achievement of specific milestones.

The drug, efimosfermin alfa, is particularly notable for being a fibroblast growth factor 21 (FGF21) analog, targeted at treating steatotic liver disease (SLD), especially metabolic dysfunction-associated steatohepatitis (MASH). This acquisition aims to address a pressing medical need, as SLD affects approximately 5% of the global population. The economic impact of effective interventions could be substantial, potentially saving the US healthcare system between $40 billion and $100 billion over two decades.

Efimosfermin's potential was demonstrated in phase II trials, where it showed rapid and significant liver fibrosis reversal, setting the stage for its anticipated role as a best-in-class treatment. GSK intends to launch efimosfermin as a new leading medicine by 2029, aligning with their research and development focus on immune system-related interventions.

Tony Wood, GSK's Chief Scientific Officer, expressed optimism about the impact efimosfermin could have on MASH treatment standards. Similarly, Elias Zerhouni MD, Chair of Boston Pharmaceuticals, highlighted the pride in their agreement with GSK.

Before the acquisition is finalized, it must receive the necessary regulatory clearances under the Hart-Scott-Rodino Act in the United States. This acquisition underscores GSK’s commitment to expanding its portfolio with advanced therapeutic options capable of addressing significant unmet medical needs.