By Pushkala Aripaka and Bhanvi Satija
Jan 20 (Reuters) - Britain's GSK has agreed to buy RAPT Therapeutics for $2.2 billion, accessing the U.S. biotech's experimental drug to treat food allergies as it seeks new medicines ahead of patent losses for a top-selling HIV drug.
The deal comes weeks after new CEO Luke Miels took over from Emma Walmsley. Miels is charged with steering GSK's next phase of growth as HIV drug dolutegravir approaches patent expiry and the company targets annual revenue of more
than 40 billion pounds ($54 billion) by 2031.
GSK has offered to pay $58 per RAPT share, a 65.2% premium to the biotech's Monday close of $35.10.
GSK shares were down 1.6% at 1,786.5 pence in afternoon trade on Tuesday, while RAPT shares jumped to $57.50 in U.S. premarket dealings, just below the offer price.
'MORE OF THE SAME'
At a healthcare conference in San Francisco last week, Chief Scientific Officer Tony Wood said GSK planned to maintain its existing approach to acquisitions under Miels' leadership, highlighting 'bolt-on' deals for drugs in later stages of development.
Jefferies analyst Michael Leuchten said the deal reflected the sort of transactions GSK needed to pursue consistently as it faces HIV patent expiries.
Barclays analysts said RAPT's drug, ozureprubart, was earlier-stage than they expected GSK to target given dolutegravir's key patents begin expiring in mid-2028.
"We believe investors may have hoped to see a bigger or more transformational or near-term accretive transaction from new CEO Luke Miels," they said in a note.
Jefferies' Leuchten said that GSK was building a portfolio of long-acting medicines to support future growth. In December, the company won U.S. approval for a twice-yearly asthma drug.
"If there are other assets out there, they may well look at those as well," Leuchten said.
Separately, GSK said that Japan's Shionogi & Co would increase its stake in the group's majority-owned ViiV Healthcare after Pfizer's exit from the venture.
GSK will retain its 78.3% majority holding and will receive a $250 million special dividend.
'VALIDATED TARGETS'
The RAPT deal gives GSK global rights to ozureprubart outside mainland China, Macau, Taiwan and Hong Kong.
"Ozureprubart ... is consistent with our approach to acquire assets that address validated targets and where there is clear unmet medical need," GSK's Wood said on Tuesday.
Ozureprubart is a lab-engineered therapy that aims to prevent inflammation caused by allergic reactions by targeting an antibody responsible for the immune response. It potentially requires less frequent dosing than the current standard.
The drug is being tested in a mid-stage study in patients aged 12 to 55, with data expected next year. The trial will assess whether the drug helps patients tolerate higher amounts of allergens such as peanut, milk, egg, cashew or walnut without triggering a reaction.
Leuchten said the food-allergy market, a "big chunk" of which involves children, was a good target for therapies that help increase patient compliance. "I like the fact that food allergy is not a crowded market at the moment," he added.
If approved, ozureprubart would compete with Genentech's Xolair, which works in a similar way and is given every two or four weeks. RAPT's drug is being tested with 12-week dosing intervals. Novartis, Genentech's partner on Xolair, is also testing another drug, remibrutinib, for food allergy.
($1 = 0.7424 pounds)
(Reporting by Pushkala Aripaka in Bengaluru and Bhanvi Satija in London. Editing by Jan Harvey and Mark Potter)
