GSK PLANS to buy Canada-based drug developer Bellus Health in an all-cash deal for £1.6bn as the British drugmaker expands its bet on respiratory therapies.

The move to replenish its pipeline comes as GSK investors fret about whether there is enough in the medicine cabinet to keep the momentum going into the next decade with expected loss of patent protection of one of its key compounds.

At the heart of the deal - announced by both companies yesterday - is the experimental drug camlipixant, which is in late-stage development for refractory chronic cough.

GSK's offer of £11.86 per share is more than double Bellus' closing price of £5.84 per share on the Nasdaq on Monday.

(c) 2023 City A.M., source Newspaper