GSK Shares Edged Up 1.28% on the $1.4Bn Aiolos Bio Acquisition

The GSK plc (LON: GSK) share price edged up 1.28% after revealing that it had signed an agreement to acquire Aiolos Bio, Inc. (Aiolos) for an upfront payment of $1 billion, accompanied by the potential for additional success-based regulatory milestone payments amounting to up to $400 million.

This acquisition positions GSK to gain access to Aiolos' AIO-001, a promising long-acting anti-thymic stromal lymphopoietin (TSLP) monoclonal antibody. AIO-001 is poised to enter phase II clinical development, initially targeting adult patients with asthma and demonstrating the potential for treating conditions such as chronic rhinosinusitis with nasal polyps.

The monoclonal antibody was exclusively licensed to Aiolos by Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui) outside of Greater China. Addressing the TSLP pathway is a significant advancement as it targets a vital driver of the inflammatory response in major allergic and inflammatory diseases. 

TSLP is a clinically validated target in asthma treatment, irrespective of biomarker status. Early studies of AIO-001 have shown promising results regarding safety, tolerability, pharmacokinetics, and biological activity in healthy volunteers and asthma patients. 

AIO-001's enhanced potency and half-life extension technology could redefine the standard of care by allowing administration every six months.

GSK, already a leader in the respiratory diseases sector with an extensive portfolio of both marketed and investigational medicines, aims to broaden its offerings with AIO-001. The acquisition positions GSK to provide a biologic option to a broader spectrum of the 315 million asthma patients, encompassing those with low T2 inflammation, regardless of biomarker status.

Tony Wood, Chief Scientific Officer, GSK, said: “We have a proud heritage and deep development expertise in respiratory medicines, especially addressing diseases driven by IL-5 with high levels of eosinophils or high T2 inflammation. 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.”

Khurem Farooq, Aiolos Bio’s CEO, said: “We believe that this transaction speaks to the high potential of our long-acting anti-TSLP monoclonal antibody, AIO-001. By uniting with GSK, a leader with decades of experience developing respiratory therapies and a shared commitment to improving patient lives, we're confident that we can rapidly advance this therapy in the hopes of significantly reducing the treatment burden for patients.”

GSK share price. 

The GSK share price increased 1.28% to trade at 1567.10p from Monday’s closing price of 1547.30p.