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| GSK has reached an agreement to purchase a Massachusetts-based company for up to $1.15 billion | Photo: ET |
US biotech cancer drug biopharmaceutical firm IDRx is acquiring UK biopharmaceutical company GSK. The deal will be worth up to $1.15 billion.
IDRx is currently developing a drug for a rare type of tumor (GIST). GSK will invest another $150 million if the drug proves successful. GSK is buying 100% of IDRx's equity. However, the acquisition deal will have to be approved by US regulators.
GSK is used to make vaccines for various diseases. But their business is declining. In this reality, they have recently focused on making cancer treatment drugs.
GSK is now making various types of drugs for the treatment of bowel cancer. It is believed that by buying IDRx, their process will be accelerated.
Every year, 80,000 to 120,000 people are affected by this GIST cancer. In two out of every five cases, this cancer is caused by a genetic mutation.
The drug that the company is bringing called IDRx-42 will prevent this genetic mutation. The initial tests of this drug have been successful. So far, no such drug has been approved.
"The acquisition of IDRx will accelerate GSK's current strategy, which is focused on treating diseases where there is a shortage of drugs," GSK chief commercial officer Luke Miles said in a statement.