GSK To Scoop Clinical Stage US Biotech Affinivax For $3.3B To Shore Up Vaccine Business

GSK plc GSK agreed to acquire U.S. biotech Affinivax for up to $3.3 billion, Reuters reports.
The purchase price includes $2.1 billion upfront and $1.2 billion in potential milestones.
Affinivax offers GSK its next-generation vaccines under development, the most advanced for pneumonia, meningitis, bloodstream infections, and sinusitis.
Affinivax's newer vaccine technology aims to strengthen the breadth of immunity against a pathogen such that an immune-boosting adjuvant is not necessary.
The deal marked GSK's second in two months, offering it access to Affinivax's roster of next-generation vaccines, Reuters notes.
GSK's newer shingles vaccine has been a critical growth driver following pandemic recovery.
However, GSK needs a new product to bolster the vaccines business ahead of the separation of its consumer business, home to brands like Sensodyne toothpaste and Advil painkillers.
The acquisition could serve as a massive breakthrough for GSK, battling Pfizer, Inc PFE and Moderna, Inc MRNA using newer mRNA technology.
Price Action: GSK shares traded lower by 0.18% at $43.98 in the premarket on the last check Tuesday.