GSK to buy Canada's Bellus Health for $2bn

Pharmaceutical company GSK is buying Canadian drug development company Bellus Health for $2bn in cash, the companies said on Tuesday.

GSK is offering $14.75 a share for Bellus, more than double its $7.26 closing price on the US Nasdaq exchange overnight.

The deal gives GSK access to Bellus’s camlipixant drug, currently in late-stage development to treat adult patients with refractory chronic cough.

The acquisition is expected to be accretive to GSK's adjusted earnings per share from 2027 following the anticipated regulatory approval and launch of camlipixant in 2026, GSK said on Tuesdai

"Camlipixant, a novel, highly selective P2X3 antagonist, has the potential to be a best-in-class treatment with significant sales potential," said GSK chief commercial officer Luke Miels.

"Patients suffering from severe forms of refractory chronic cough can experience over 900 coughs daily, resulting in quality-of-life issues. This proposed acquisition complements our portfolio of specialty medicines and builds on our expertise in respiratory therapies."

Reporting by Frank Prenesti for Sharecast.com