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GSK to buy cancer drugmaker Tesaro for $5.1 billion

Reuters  |  LONDON 

By Ben Hirschler

LONDON (Reuters) - has agreed to buy U.S. for $5.1 billion, marking a major biotech investment by the drugmaker as its seeks to rebuild its portfolio.

Britain's biggest drugmaker is paying $75 a share for the business, an 110 percent premium to the 30-day average price. of the lofty valuation sent shares down 4 percent on Monday.

The deal gives a marketed product for ovarian cancer, Zejula, which belongs to the promising new class of medicines called poly ribose polymerase (PARP) inhibitors. GSK's UK rival, , sells the rival PARP drug

has made replenishing GSK's medicines cabinet her top priority and the company signalled its intention to make more acquisitions in April, when it hired a key deal-maker from Roche's unit.

has lagged behind rivals in recent years in producing multibillion-dollar blockbusters and it largely sat out a spate of deal-making by rival drugmakers under previous

GSK said buying would weigh on adjusted earnings for the first two years by mid to high single digit percentage rates, but the acquisition should be accretive by 2022.

Zejula's revenues in its current approved indication as second-line maintenance were $166 million in the nine months to September.

(Reporting by Ben Hirschler; Editing by and Andrew Heavens)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 18:31 IST