Flagship Pioneering and its portfolio companies are in line to receive up to $720 million in milestones for each of the 10 programs that GSK could option, according to Monday’s announcement.
GSK and Flagship Pioneering are jointly providing up to $150 million to fund the exploration of potential respiratory and immunology programs, the companies announced Monday.
The collaboration combines GSK’s expertise in the disease areas and drug development capabilities with the innovation of the more than 40 biopharma companies in Flagship’s portfolio. Flagship is the venture capital company behind biotechs including Moderna.
In the exploration phase of the collaboration, GSK and Flagship will provide up to $150 million to support the identification of the most promising respiratory and immunology concepts across the VC company’s portfolio of biotechs. The initial phase is intended to select up to 10 novel medicines and vaccines. GSK will have an exclusive option for further clinical development of the candidates.
Flagship and its portfolio companies are in line to receive up to $720 million in upfront, development and commercial milestones for each acquired program. If each program hits all its goals, GSK will pay Flagship and its companies $7.2 billion in milestones. The history of drug development, which shows most R&D programs fail, suggests the projects are highly unlikely to all meet their goals.
Securing an exclusive option on up to 10 Flagship programs positions GSK to strengthen the pipeline in an important part of its business. Respiratory and immunology drugs accounted for almost 9% of GSK’s sales in the first quarter. Factoring in respiratory vaccines such as respiratory syncytial virus shot Arexvy increases the therapeutic area’s share of sales to more than 10%.
The asthma drug Nucala (mepolizumab) and lupus treatment Benlysta (belimumab) drove respiratory and immunology growth at GSK in the first quarter. The British drugmaker is investing to support further growth, funding Phase III trials of the ultra-long-acting anti-IL-5 monoclonal antibody depemokimab and paying $1 billion upfront for Aiolos Bio and its long-acting anti-TSLP candidate.
Pneumococcal vaccines acquired in the $3.3 billion takeover of Affinivax, mRNA influenza vaccines and a cough candidate picked up in the $2 billion Bellus buyout are also central to GSK’s plans. The drugmaker has identified the molecules as candidates that can ensure it continues growing even as it loses market exclusivity on the HIV drug dolutegravir around the end of the decade.
For Flagship, the GSK deal furthers its strategy of partnering with large pharma companies. The VC fund teamed up with Pfizer to explore up to 10 candidates in 2023. The deal has a similar structure to the GSK pact, with Pfizer and Flagship investing $100 million upfront and each R&D program featuring up to $700 million in milestones. Flagship’s ProFound Therapeutics struck an obesity deal with Pfizer in June 2024.
