Key Summary
- The deal will provide GSK access to RAPT's ozureprubart, a long-acting antibody in clinical development for treating food allergies.
- The current treatments for food allergies require injections every two to four weeks, but for ozureprubart it is once in 12 weeks.
- GSK will acquire all outstanding shares of RAPT common stock and the transaction is expected to be finalised in the current quarter.
GlaxoSmithKline has agreed to buy US biotech company RAPT Therapeutics, which is developing a food allergy drug, for $2.2 billion.
The acquisition will provide Britain's second-largest drugmaker access to ozureprubart, a long-acting antibody in clinical development for the treatment of food allergies.
California-based RAPT specialises in developing therapies for inflammatory and immunologic diseases.
RAPT uses its expertise in immunology to develop novel molecules that are designed to modulate the critical immune responses underlying these diseases.
GSK said in a statement that ozureprubart "offers the potential for less frequent dosing of every 12 weeks", compared with current treatments, which require injections every two to four weeks.
GSK will acquire all outstanding shares of RAPT common stock for $58.00 each in cash within 10 business days of signing.
The transaction is expected to be finalised in the current first quarter.
It is GSK's first large deal, after Luke Miels took over as chief executive from Emma Walmsley at the start of the year.
GSK scientific officer Tony Wood has termed the acquisition as "another promising new, potential best-in-class treatment to GSK’s pipeline."
RAPT CEO Brian Wong said the deal would provide them access to GSK's global development and commercialisation capabilities.
According to Food Standards Agency's 'Patterns and Prevalence of Adult Food Allergy' (PAFA) report, about 6 percent of UK adults or 2.4 million people, have a food allergy.
Peanuts and tree nuts such as hazelnuts, walnuts and almonds are the most common causes to trigger an allergic reaction.
"If GSK can crack the formula for a more convenient treatment, it stands to potentially make big bucks," said AJ Bell investment director Russ Mould.
