Glaxo swoops for US rival’s HIV treatment

GLAXOSMITHKLINE is the latest drug industry giant to snap up a rival as it sealed deals for HIV treatments worth up to £974.6m.

The pharmaceutical company’s global HIV business ViiV Healthcare is buying the early and latestage research and development drug assets from US rival BristolMyers Squibb.

The deal includes fostemsavir, which has won a therapy designation from US watchdogs and is due to be filed for US regulatory approval in 2018.

The City will be hoping the move helps to boost Glaxo’s business at a time when it has become the subject of takeover talk due partly to its flagging share price.

Glaxo’s stock has fallen from a peak in the last year of 1642p, to 1334p yesterday.

In June, rumours abounded that Glaxo could face approaches from Roche of Switzerland or Johnson & Johnson of the US. Its share price was 1351p at the time.

ViiV chairman David Redfern said: ‘ These acquisitions strengthen our leadership and innovation in HIV.’

The deal is the latest in a string of multi-billion dollar acquisitions by drug giants looking to beef up their new drug portfolios amid competition from producers of copycat versions of older patentfree medicines.

Only this week, AstraZeneca snapped up the core respiratory business of Japanese group Takeda Pharmaceutical for about £385m. AstraZeneca also bought a stake in Acerta Pharma and completed a deal to buy ZS Pharma,.

Last month, UK rival Shire announced a £4.3bn swoop for hereditary angioedema treatment developer Dyax.

Meanwhile, US prosecutors arrested and charged drug entrepreneur Martin Shkreli. He is accused of fraud relating to a drug company he headed and a hedge fund where he was a fund manager. He strongly denies fraud.