GlaxoSmithKline to Buy Rival Bristol-Myers Squibb HIV Portfolio

British pharmaceutical company GlaxoSmithKline (GSK) announced on December 18, that it would buy HIV drugs from US rival Bristol-Myers Squibb. The $1.46 billion deal would provide GSK's HIV unit more possibilities for growth. The HIV unit, called ViiV Healthcare is GSK's main HIV business.

GSK will pay Bristol in two installments. The first, $317 million, immediately for two of Bristol's late stage HIV drugs with an additional $33 million for properties created during the early discovery phases of research. The second installment of $518 million for the late-stage drugs and $587 million for the early-stage drugs will come if those drugs reach the projected development and commercial milestones.

GSK Chief Strategy Officer and Chairman of ViiV Healthcare, David Redfern was positive about the move in the press release about the acquisition.

"These acquisitions strengthen our leadership and innovation in HIV, one of our core areas of scientific research at GSK. The addition of two potential first-in-class late-stage treatments and several promising early clinical development programmes strengthens ViiV Healthcare's pipeline and provides us with further new opportunities for growth."

Bristol-Myers Squibb's chief scientific office, Francis Cuss, felt that the new arrangement with GSK and ViiV Healthcare would help expedite the ongoing medical research that HIV requires.

"Given the remaining unmet medical needs in HIV, Bristol-Myers Squibb continued its discovery of novel treatment approaches and the agreements with ViiV Healthcare now put the development of these potentially first-in-class compounds into the hands of a global specialist company exclusively dedicated to finding new medicines for people living with HIV."

The payments are projected for completion in the first half of 2016. This would allow GSK to compete with Gilead Sciences, its American rival that holds the largest HIV market share in the world. According to the International Business Times, Pfizer and Japan's Shionogi are also minority partners in ViiV Healthcare.

The acquisition will allow ViiV Healthcare to manage the newly gained programs and Bristol will still provide specific research and development support as the companies transition. The Bristol press release also stated that 20 Bristol employees will be offered a chance to move with the research to ViiV Healthcare.

One of the late-stage drugs acquired by Bristol is Fostemsavir which was designated by the US Food and Drug Administration as a Breakthrough Therapy Drug. This new title specifies that the drug is intended to treat a serious or life-threatening disease or condition.

Fostemsavir is given to HIV patients whose treatments are not affecting their disease any longer. Hopefully with these new acquisitions, the world of HIV drug treatments, like Fostemsavir, will be more affordable and more effective for the patients that desperately need its help.