GSK to acquire Canadian biopharma company BELLUS Health for $2bn

GSK has agreed to acquire BELLUS Health, a Canadian biopharma company, in a deal worth around $2 billion in a move to further bolster its specialty medicines and respiratory pipeline.

The deal gives GSK access to a late-stage P2X3 antagonist called camlipixant, which is intended for the treatment of refractory chronic cough (RCC). Presently, camlipixant is in phase 3 development for the treatment of the respiratory condition in adults in the first-line setting.

According to GSK, P2X3 is a known biological target involved in the hypersensitization of cough reflexes, and camlipixant is a highly specific P2X3 antagonist.

Present clinical data indicated through the selective inhibition of P2X3 receptors, camlipixant could lower frequency of cough in refractory chronic cough patients with a comparatively low rate of dysgeusia, the taste disturbance adverse event related to other medicines that largely target the P2X2/3 receptor.

This acquisition of BELLUS Health is said to be extremely synergistic with GSK’s expertise and experience in respiratory medications and is further backed by the latter’s manufacturing, research and development (R&D), and commercialization capabilities.

After the expected regulatory approval and rollout of camlipixant in 2026, the acquisition is anticipated to yield a positive impact on adjusted EPS in the following year and is likely to result in substantial sales until 2031, and possibly beyond, said GSK.

In late 2021, the Canadian biopharma company reported positive findings from the SOOTHE phase 2b clinical trial in which the primary endpoint was met for the 50mg and 200mg twice-daily dosages.

Based on the findings of the SOOTHE phase 2b trial, BELLUS Health began the CALM phase 3 development program, which is made up of the CALM-1 and CALM-2 trials. Data from the phase 3 trials are expected in H2 2024 and 2025, respectively.

Besides, BELLUS Health is assessing a once-daily formulation for camlipixant, which is presently in phase 1 trial.

Luke Miels — GSK Chief Commercial Officer said: “Patients suffering from severe forms of refractory chronic cough can experience over 900 coughs daily, resulting in quality-of-life issues. Camlipixant, a novel, highly selective P2X3 antagonist, has the potential to be a best-in-class treatment with significant sales potential.

“This proposed acquisition complements our portfolio of specialty medicines and builds on our expertise in respiratory therapies.”

GSK to acquire Canadian biopharma company BELLUS Health for $2bn. Photo courtesy of GSK plc.

As per the terms of the deal, shareholders of the Toronto Stock Exchange (TSX) and Nasdaq-listed BELLUS Health will be offered $14.75 per share in cash by GSK.

Roberto Bellini — BELLUS Health CEO said: “This acquisition recognises the value of our highly selective P2X3 antagonist camlipixant and validates the hard work and dedication of all the BELLUS employees in advancing camlipixant to date.

“As a leader in respiratory research for over five decades, GSK shares our commitment to bettering the lives of individuals suffering from a persistent cough and is the ideal Company to rapidly bring camlipixant to the millions suffering from refractory chronic cough around the world.”

The transaction is conditional on regulatory approvals and the approval of BELLUS Health’s shareholders.