British pharmaceutical giant GlaxoSmithKline has agreed to acquire US biotech company RAPT Therapeutics in a deal valued at $2.2 billion. The acquisition provides GSK with access to ozureprubart, a long-acting antibody in clinical development for the treatment of food allergies. This drug has the potential to offer less frequent dosing, with injections every 12 weeks, compared to current treatments that require injections every two to four weeks.
Food allergies are a significant health concern, with over 17 million people in the United States diagnosed, and more than 1.3 million experiencing severe reactions. GSK’s acquisition of RAPT Therapeutics could lead to the development of a more convenient treatment, potentially generating substantial revenue. According to AJ Bell investment director Russ Mould, “If GSK can crack the formula for a more convenient treatment, it stands to potentially make big bucks.”
RAPT Therapeutics, based in California, specializes in developing therapies for inflammatory and immunologic diseases. Under the terms of the deal, GSK will pay $58 per share, valuing the company at $2.2 billion. The transaction is expected to be finalized in the current first quarter.
The acquisition highlights GSK’s efforts to expand its portfolio of treatments for immunologic diseases. With the global prevalence of food allergies on the rise, the development of effective treatments is crucial. GSK’s share price declined by 1.6 percent on the London Stock Exchange’s FTSE 100 index, which was trading lower due to concerns over US tariffs.
The deal is significant, as it demonstrates the pharmaceutical industry’s growing interest in developing treatments for food allergies and other immunologic diseases. As the demand for effective treatments continues to grow, companies like GSK are investing in research and development to address this need. The acquisition of RAPT Therapeutics is a strategic move by GSK to strengthen its position in the market and potentially improve the lives of millions of people affected by food allergies.
