GSK to buy RAPT Therapeutics’ food allergy drug for $2.2 billion

GSK to buy RAPT Therapeutics’ food allergy drug for $2.2 billion

The deal gives it global rights to ‘ozureprubart’, outside mainland China, Macau, Taiwan and Hong Kong

British company, GSK, has consented to purchasing California’s biotechnology company, RAPT Therapeutics, for $2.2 billion, accessing the US biotech's experimental drug, ozureprubart, to treat food allergies.

‘Ozureprubart’ is a lab-engineered therapy to prevent inflammation caused by allergic reactions. It targets an antibody responsible for the immune response and requires less frequent dosing than the current standard.

GSK is seeking new medicines ahead of patent losses for a top-selling HIV drug, dolutegravir.

The trade in happened weeks after Luke Miels took over as the new CEO from Emma Walmsley.

Miels will handle GSK's next phase of growth, as ‘dolutegravir’ approaches patent expiry in mid-2028, and the company targets annual revenue of over 40 billion pounds ($54 billion) by 2031. GSK has offered to pay $58 per RAPT share, a 65.2 percent premium to the biotech's Monday close of $35.10.

Recently, at a healthcare conference in San Francisco, Tony Wood, Chief Scientific Officer, informed that GSK planned to maintain its existing approach to acquisitions under Miels' leadership, highlighting 'bolt-on' deals for drugs in later stages of development.

Woods stated, “Ozureprubart is consistent with our approach to acquire assets that address validated targets and where there is clear unmet medical need.”

Michael Leuchten, analyst at Jefferies Group, said the deal reflected that GSK needed to pursue transactions consistently, as it faced expiry of HIV drug’s patent. GSK was building a portfolio of long-acting medicines to support future growth. The company won US approval for a twice-yearly asthma drug recently.

Leuchten added, "If there are other assets out there, they may well look at those as well.” GSK will retain its 78.3 percent majority holding and will receive a $250 million special dividend.

Meanwhile, analysts at Barclays expressed that RAPT's drug, ‘ozureprubart’, happened earlier than they expected GSK to target, given ‘dolutegravir's key patents expiry. The analysts added, "We believe investors may have hoped to see a bigger or more transformational or near-term accretive transaction from new CEO Luke Miels.”