# GSK bets $2 billion on Bellus cough drug to soothe pipeline fears Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-18 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: GSK Buys Bellus for $2 Billion to Expand Respiratory Portfolio Meta Description: GSK acquires Bellus for $2 billion, bolstering respiratory portfolio with late-stage chronic cough drug, camlipixant, amid patent worries and competition with URL: https://financedigest.com/gsk-bets-2-billion-on-bellus-cough-drug-to-soothe-pipeline-fearshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-18t093828z1lynxmpej3h0bdrtroptp4gsk-results-1736814130609-compressed.jpg) # GSK bets $2 billion on Bellus cough drug to soothe pipeline fears By Natalie Grover and Aby Jose Koilparambil (Reuters) -GSK plans to buy Canada-based drug developer Bellus Health Inc in an all-cash deal for $2 billion as the British drugmaker expands its bet on respiratory therapies. The move to replenish its pipeline comes as GSK investors fret about whether there is enough in the medicine cabinet to keep the momentum going into the next decade with expected loss of patent protection of one of its key compounds. At the heart of the deal – announced by both [companies on Tuesday – is the experimental drug](https://www.financedigest.com/generic-oncology-drugs-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Generic Oncology Drugs Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027"), camlipixant, which is in late-stage development for refractory chronic cough (RCC). The condition can cause patients to cough more than 900 times a day. Some 10 million patients [globally suffer](https://www.financedigest.com/will-global-commodities-suffer-as-a-result-of-brexit-the-experts-at-easymarkets-think-not.html "WILL GLOBAL COMMODITIES SUFFER AS A RESULT OF BREXIT? THE EXPERTS AT EASYMARKETS THINK NOT!") from it for more than a year. So far, there are no approved therapies in the United States and Europe. GSK’s offer of $14.75 per [share is more than double](https://www.financedigest.com/permitted-share-of-chinas-yuan-in-russian-wealth-fund-doubled-to-60-finance-minister.html "Permitted share of China’s yuan in Russian wealth fund doubled to 60% -Finance Minister") Bellus’ closing price of $7.26 on the Nasdaq on Monday. The Bellus deal expands GSK’s existing respiratory portfolio, including Nucala and Trelegy, which generated more than a combined 3 [billion pounds](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax") ($3.73 billion) last year. Camlipixant is up against Merck’s rival drug, gefapixant, for RCC patients. Early in 2022, gefapixant was denied approval by the U.S. regulator, which sought more information on its effectiveness – but the U.S. drugmaker is [expected to resubmit an application for another review later this year](https://www.financedigest.com/twenty-years-cash-isas-uk-fallen-short-expectations-alternatives.html "Twenty years on, cash ISAs in the UK have fallen short of expectations: what are the alternatives?"). Still, some analysts [say camlipixant – should both drugs be eventually approved](https://www.financedigest.com/elon-musks-neuralink-says-has-fda-approval-for-study-of-brain-implants-in-humans.html "Elon Musk’s Neuralink says has FDA approval for study of brain implants in humans") in the United States – could emerge as preferred option with a superior safety profile. Jefferies analysts [estimated camlipixant could generate](https://www.financedigest.com/global-thermoelectric-generator-market-is-estimated-to-cross-us-720-million-by-2021.html "GLOBAL THERMOELECTRIC GENERATOR MARKET IS ESTIMATED TO CROSS US 0 MILLION BY 2021") peak U.S. [sales of $1.2 billion](https://www.financedigest.com/automotive-body-in-white-sales-at-3-4-cagr-over-the-forecast-period-from-2021-to-2031-reaching-us-59-7-billion-in-2021.html "Automotive Body in White sales at 3.4% CAGR over the forecast period from 2021 to 2031, reaching US$ 59.7 billion in 2021"), in a note earlier this month. ## DEAL FLURRY Investors are particularly interested in GSK’s future plans, given the pending loss of patent protection in 2027 for dolutegravir, the compound that forms part of four GSK’s HIV treatments, which [puts more than 5 billion pounds of sales](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at billion valuation – FT") at risk. The company is leaning in part on the prospects of its own vaccine targeted at the respiratory syncytial virus (RSV), which causes thousands of hospitalisations and [deaths a year](https://www.financedigest.com/death-of-former-pope-benedict-overshadows-new-year-at-vatican.html "Death of former Pope Benedict overshadows New Year at Vatican"), to at least partially offset that loss. It has also announced a string of deals including a buyout of Affinivax and Sierra Oncology to plug the gap. Still, the company also has culled a handful of programmes from its pipeline in recent months and suffered setbacks in its marketed [cancer drug](https://www.financedigest.com/astrazeneca-lifts-2022-earnings-outlook-as-cancer-drugs-boost-results.html "AstraZeneca lifts 2022 earnings outlook as cancer drugs boost results") portfolio. [Demand for its flagship blockbuster Shingrix vaccine](https://www.financedigest.com/immunization-campaigns-to-boost-the-demand-for-vaccines.html "Immunization Campaigns To Boost The Demand For Vaccines") is also expected to eventually saturate. Deals like Bellus will have an impact in the second half of the decade are certainly very helpful to closing that gap, Luke Meils, GSK’s [chief commercial officer](https://www.financedigest.com/iris-software-group-names-matt-tuson-as-chief-revenue-officer.html "IRIS Software Group names Matt Tuson as Chief Revenue Officer"), told a media briefing. We expect to [continue doing deals](https://www.financedigest.com/volkswagen-strikes-below-inflation-wage-deal-continues-german-trend.html "Volkswagen strikes below-inflation wage deal, continues German trend") like this. ($1 = 0.8052 pounds) [(Reporting by Aby Jose Koilparambil in Bengaluru and Natalie Grover in London; Editing by Savio D’Souza and Louise Heavens)](https://www.financedigest.com/london-reclaims-place-as-preeminent-global-financial-centre-for-the-first-time-since-2013-according-to-global-regulatory-outlook-report-from-duff-phelps.html "London reclaims place as preeminent global financial centre for the first time since 2013, according to Global Regulatory Outlook report from Duff & Phelps") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---