GSK has entered into an agreement to buy Aiolos Bio in an effort to strengthen its pipeline of respiratory and inflammatory assets.
GSK on Tuesday announced it has entered into an agreement to buy Aiolos Bio in an effort to strengthen its pipeline of respiratory and inflammatory assets.
As per the acquisition agreement, GSK will pay Aiolos shareholders $1 billion upfront and will pledge up to $400 million in success-based regulatory milestones. The companies did not indicate when they expect to close the deal, but said that the transaction is subject to anti-trust clearance and other customary closing conditions.
At the core of the Aiolos buyout is AIO-001, a long-acting monoclonal antibody that targets the thymic stromal lymphopoietin (TSLP) cytokine, which according to the biotech’s website is a “validated driver of inflammation.” Blocking TSLP has been the “only biological approach that has demonstrated clinical benefit” in all types of moderate-to-severe asthma, Aiolos asserts.
AIO-001, which Aiolos licensed from Jiangsu Hengrui Pharmaceuticals outside of Greater China in August 2023, has the potential to be administered biannually, ultimately reducing the burden of asthma on patients’ daily lives. Preclinical studies and early clinical trials have validated the candidate’s mechanism of action and schedule, showing its promising efficacy and a long half-life, according to Aiolos’ website.
Based on this potential, Aiolos launched just three months ago, in October 2023, with $245 million in Series A support. The funding round was backed by several big investors, including Atlas Venture, Bain Capital Life Sciences and Sofinnova Investments.
“Adding AIO-001, a potentially best-in-class medicine targeting the TSLP pathway, could expand the reach of our current respiratory biologics portfolio, including to the 40% of severe asthma patients with low T2 inflammation where treatment options are still needed,” Tony Wood, chief scientific officer at GSK, said in a statement Tuesday.
As part of the Aiolos acquisition, GSK will be responsible for milestones and tiered royalties to Jiangsu Hengrui.
GSK is the fourth industry giant to jump into the dealmaking frenzy at the 42nd annual J.P. Morgan Healthcare Conference. On Monday, J&J put forward $2 billion to acquire La Jolla, Calif.–based Ambrx, which develops antibody-drug conjugates for cancer. The same day, Merck announced it was shelling out $680 million to buy Harpoon Therapeutics and its portfolio of T-cell engagers for various oncology targets.
Novartis likewise made three smaller plays on Monday, including a $250 million buyout of Calypso Biotech, bolstering its presence in immune diseases, and two RNAi license deals with Chinese biotech Shanghai Argo Biopharmaceutical, focusing on cardiovascular indications.