IDRx to be Acquired by GSK for $1.15 Billion
Deal News | Jan 13, 2025 | Goodwin
Pharmaceutical giant GSK has reached an agreement to acquire IDRx, a clinical-stage biopharmaceutical company, for an upfront payment of $1 billion and potential additional milestone payments of $150 million. The agreement sees GSK obtaining full equity interest in IDRx, a company known for its precision therapies targeting cancer, specifically their lead molecule IDRX-42. This small molecule tyrosine kinase inhibitor aims at treating gastrointestinal stromal tumors (GIST) by targeting all key KIT mutations. The transaction, which includes success-based milestone payments and royalties owed to Merck KGaA, is contingent upon customary regulatory clearances. Goodwin's legal teams across various specializations including M&A, regulatory approvals, and intellectual property, advised on the deal. With its promising pipeline, IDRx is set to transform cancer care by overcoming current limitations of precision medicines, making this acquisition a significant move for GSK in expanding its cancer treatment portfolio.
Sectors
- Biopharmaceuticals
- Pharmaceuticals
- Mergers and Acquisitions
Geography
- United States – The location where IDRx operates and where the deal is subject to regulatory clearance under U.S. law.
- United Kingdom – GSK is headquartered in the UK, making it a significant geography in this acquisition.
Industry
- Biopharmaceuticals – The industry focusing on drugs that are produced using biotechnology, relevant as IDRx is a biopharmaceutical company working on precision cancer therapies.
- Pharmaceuticals – The industry involved in the research, development, and production of drugs, relevant because GSK is a major pharmaceutical player acquiring IDRx.
- Mergers and Acquisitions – The sector focusing on transactions involving the combination, purchase, or division of companies, relevant as the article discusses the acquisition of IDRx by GSK.
Financials
- $1 billion – Upfront payment to acquire IDRx.
- $150 million – Success-based regulatory approval milestone payment.
- $1.15 billion – Total potential deal value including upfront and milestone payments.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| IDRx, Inc. | Target Company | Company | A clinical-stage biopharmaceutical company focused on developing innovative cancer therapies. |
| GSK plc | Bidding Company | Company | A British multinational pharmaceutical company acquiring IDRx to enhance its cancer treatment portfolio. |
| Merck KGaA | Partner in Revenue Sharing | Company | Involved due to tiered royalties for IDRX-42 that GSK will owe, based in Darmstadt, Germany. |
| Goodwin | Legal Advisor | Company | Provided legal advisory services for the acquisition, with a team across various legal disciplines. |
| Robert E. Puopolo, Blake Liggio and Caitlin Tompkins | Lead Legal Advisors | People | Lawyers leading the Goodwin team advising on the acquisition. |