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 GSK said the acquisitions would provide ViiV Healthcare, its HIV
unit in which Pfizer and Shionogi are junior partners, with new
opportunities for growth.
The British company is reviving its position in HIV treatment as
part of its strategy to return to earnings growth in 2016.
It used to dominate the market but ViiV's 2014 sales of 1.5 billion
pounds ($2.3 billion) were less than a quarter of the HIV revenue
generated by market leader Gilead Sciences.
ViiV will pay an initial $317 million to buy late-stage HIV drug
candidates from Bristol-Myers, including a phase III development
treatment fostemsavir, plus $33 million for its preclinical assets.
Both deals are subject to a further payment of over $500 million
dependent on commercial milestones being met.
GSK said the assets being acquired complemented ViiV's existing
portfolio and could be used in combination therapies.
HIV is often treated by mixing at least three medicines together
because of the ability of the virus that causes AIDS to mutate and
become drug-resistant.
"The addition of two potential first-in-class late-stage treatments
and several promising early clinical development programs
strengthens ViiV Healthcare's pipeline and provides us with further
new opportunities for growth," said GSK's chief strategy officer
David Redfern, who is also chairman of ViiV.
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Demand for HIV drugs is helping GSK replace declining sales of its
market-leading respiratory medicine Advair is in decline.
Shares in GSK were flat at percent at 1,341.5 pence at 0831 GMT
(3.31 a.m. ET).
(Reporting by Sarah Young, Editing by Paul Sandle)
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