GlaxoSmithKline (GSK) has completed its acquisition of US-based biopharmaceutical company Tesaro for an aggregate cash consideration of $5.1bn.
An agreement for the acquisition was signed in December last year. The deal boosts GSK’s pharmaceutical business by supporting its oncology pipeline.
Meanwhile, Tesaro expects the transaction to drive its development and commercialisation strategy for new therapies.
Tesaro president and chief operating officer Mary Lynne Hedley said: “This new partnership between Tesaro and GSK marks an important milestone in advancing our mission of developing transformative therapies for individuals living with cancer.
“Together with GSK, we can accelerate and further advance Tesaro’s development and commercialisation initiatives and, ultimately provide more time for more patients.”
Oncology-focused Tesaro already holds the US and European approval for its lead candidate Zejula (niraparib) to treat adults with recurrent ovarian cancer.
Zejula is an oral poly ADP ribose polymerase (PARP) inhibitor, which has the potential to treat different cancers.
The drug is currently in clinical trials as a monotherapy and in combinations for first line maintenance therapy of ovarian cancer with or without gBRCA mutations.
Apart from ovarian cancer, Zejula is being evaluated in patients with lung, breast and prostate cancers.
Tesaro oncology pipeline includes multiple other products such as anti-PD-1 antibody dostarlimab and antibodies against TIM-3 and LAG-3 targets.
GSK R&D chief scientific officer and president Hal Barron said: “Both GSK and Tesaro are driven by a focus on patients and a deep desire to develop truly transformational medicines that can improve and extend their lives.
“The acquisition of Tesaro, which we have completed today, 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.”
Tender offer for the transaction was carried out through GSK’s indirect wholly-owned subsidiary Adriatic Acquisition Corporation.
Additional reporting by Allie Nawrat:
Also, earlier this week GSK announced its non-executive chairman Sir Phillip Hampton has resigned his post and it is searching for his successor.
In a statement, Sir Philip said: “It is a privilege to serve as Chairman of GSK. It is one of the UK’s great companies and under Emma Walmsley’s leadership, GSK has made very good progress with a new strategy and new approach to R&D.
“Following the announcement of our deal with Pfizer and the intended separation of the new consumer business, I believe this is the right moment to step down and allow a new Chair to oversee this process through to its conclusion over the next few years and to lead the Board into this next phase for GSK.”
GSK announced plans to merge its consumer business with Pfizer in December 2018.