GSK acquires exclusive rights to J&J's hepatitis B therapy for $1 billion

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GSK acquires exclusive rights to J&J's hepatitis B therapy for $1 billion
Credit: © Reuters.

British pharmaceutical firm GSK has secured a $1 billion deal with Janssen, a Johnson & Johnson subsidiary, for the exclusive rights to further develop and commercialize the latter's hepatitis B therapy.

The therapy, known as JNJ-3989, was initially developed and licensed to Janssen by Arrowhead Pharmaceuticals (NASDAQ: ARWR ) in 2018. The agreement will bolster GSK's own hepatitis B treatment, bepirovirsen.

With the acquisition of these exclusive rights, GSK aims to expand its portfolio in the treatment of hepatitis B, a disease affecting millions worldwide. The deal signifies a significant step in GSK's strategy to consolidate its position in the global pharmaceutical market.

The agreement with Janssen allows GSK to leverage the potential of JNJ-3989, which is currently under development. The therapy has shown promise in early clinical trials, and the deal will allow GSK to continue this development, potentially bringing a new treatment option to patients affected by hepatitis B.

The deal also signifies a significant investment by GSK into hepatitis B research and treatment. This is in line with the company's commitment to addressing global health challenges and advancing patient care.

This transaction is expected to have a positive impact on GSK's financial performance, as the company continues to focus on growth and value creation in its core pharmaceutical business. The agreement also demonstrates GSK's commitment to investing in innovative therapies and technologies that can potentially bring significant benefits to patients and healthcare providers.

The deal follows a broader trend in the pharmaceutical industry, where companies are increasingly partnering and making strategic investments to accelerate the development and commercialization of innovative therapies.

The agreement between GSK and Janssen is expected to close in the coming weeks, subject to customary closing conditions. The financial terms of the deal were not disclosed. The impact of the deal on GSK's financial performance will be seen in the company's future earnings reports.

InvestingPro Insights

InvestingPro data reveals that GSK has a market capitalization of 71.95B USD and a P/E ratio of 3.8. The company has shown a revenue growth of 5.43% over the last twelve months as of Q2 2023. Furthermore, GSK's return on assets for the same period stands at 21.33%.

Two key InvestingPro Tips for GSK are worth noting: firstly, GSK yields a high return on invested capital, and secondly, it has maintained dividend payments for 23 consecutive years, which indicates a stable financial performance.

On the other hand, Johnson & Johnson, the parent company of Janssen, boasts a market capitalization of 353.94B USD and a P/E ratio of 10.95, as per InvestingPro data. The company has experienced a revenue growth of 16.26% over the last twelve months as of Q3 2023. Moreover, Johnson & Johnson's return on assets for the same period is 20.3%.

Two InvestingPro Tips for Johnson & Johnson include the company's aggressive share buyback strategy and its track record of raising its dividend for 53 consecutive years. These factors highlight the company's strong financial health and commitment to shareholder value.

For those interested in more comprehensive insights and tips, InvestingPro offers a multitude of additional tips for both GSK and Johnson & Johnson.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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