GSK completes $5.1bn acquisition of Tesaro to boost oncology pipeline

GlaxoSmithKline (GSK), the British pharmaceutical powerhouse, has successfully concluded its $5.1 billion acquisition of Tesaro, a leading oncology-focused biopharmaceutical company based in Waltham, Massachusetts. This strategic acquisition, which was first announced in December 2018, is expected to significantly bolster GSK’s presence in the oncology sector, reinforcing its pharmaceutical business and enhancing its pipeline and commercial capabilities in cancer treatment.

The deal, which valued Tesaro at $75 per share, is a key move for GSK to expand its oncology portfolio and leverage Tesaro’s expertise and innovative treatments. The acquisition is expected to accelerate the development of therapies aimed at tackling various forms of cancer, benefiting from Tesaro’s established reputation and cutting-edge research.

Strengthening the oncology pipeline

The GSK-Tesaro deal is poised to create a stronger, more competitive entity in the oncology market. Dr. Hal Barron, Chief Scientific Officer and President of GSK R&D, emphasised that both companies share a deep commitment to improving the lives of cancer patients. He highlighted that the acquisition enhances GSK’s ability to expedite the pace of developing transformative medicines for cancer patients.

Dr. Barron further stated, “The acquisition of Tesaro significantly strengthens our oncology pipeline and brings new scientific capabilities and expertise that will increase the pace and scale at which we can help patients living with cancer.”

The inclusion of Tesaro’s advanced oncology treatments into GSK’s pipeline is set to accelerate the discovery of novel cancer therapies. Tesaro’s prominent product, Zejula (niraparib), an oral poly ADP ribose polymerase (PARP) inhibitor, is already approved by the US FDA for the treatment of recurrent ovarian cancer. The drug is also approved in Europe for similar indications in patients who have responded to platinum-based chemotherapy, regardless of their BRCA mutation or biomarker status.

Zejula’s role in expanding cancer treatment

Zejula has proven its potential in treating ovarian cancer, and its development is ongoing. Clinical trials are assessing the drug’s effectiveness as a monotherapy and as a combination therapy for first-line maintenance treatment of ovarian cancer. Beyond ovarian cancer, Zejula is also under investigation for its potential applications in treating other cancers, including lung, breast, and prostate cancer.

In addition to Zejula, Tesaro‘s portfolio includes several promising oncology drug candidates, including an anti-PD-1 antibody called dostarlimab, and other products targeting PD-1, TIM-3, and LAG-3, which could offer new avenues for cancer treatment.

A new chapter in cancer research

Dr. Mary Lynne Hedley, President and COO of Tesaro, reflected on the acquisition, commenting that it marks a pivotal moment for both companies in their shared mission to develop innovative therapies for cancer patients. She stated, “Together with GSK, we can accelerate and further advance Tesaro’s development and commercialization initiatives and, ultimately, provide more time for more patients.”

With this acquisition, GSK is reinforcing its strategic position in oncology, building on Tesaro’s strong portfolio and clinical expertise to drive forward the discovery of novel cancer therapies. The combined efforts will likely accelerate breakthroughs in the treatment of several hard-to-treat cancers.