GSK snaps up IDRx for up to $1.15B

Britan-based pharmaceutical giant GSK has agreed to acquire 100% of the outstanding equity interests (including all options and other incentive equity) in IDRx, a US-based, clinical-stage biopharmaceutical company focused on developing precision therapeutics for the treatment of gastrointestinal stromal tumors (GIST). The acquisition includes IDRX-42, a highly selective KIT tyrosine kinase inhibitor (TKI) being developed as a first- and second-line therapy for GIST.

The financial terms of the deal stipulate an upfront payment of $1 billion, with a further $150 million contingent on regulatory approval milestones. Additionally, GSK will be responsible for success-based milestone payments and tiered royalties owed to Merck KGaA, Darmstadt, Germany.

This acquisition strengthens GSK’s growing portfolio in gastrointestinal cancers, aligning with its strategic focus on acquiring best-in-class molecules. IDRX-42’s potential to address the full spectrum of KIT mutations in GIST complements GSK’s existing oncology pipeline, enhancing its capability to offer targeted treatments with improved tolerability. Additionally, GSK’s expertise in GI cancer and global clinical development will help accelerate IDRX-42’s development, bringing a much-needed solution to GIST patients.

GSK shares ended January 10 at 1,349.50 pence and were last quoted at 1,393.20 pence, marking a rise of approximately 3.24%