Pushkala Aripaka

(Reuters). -GSK has agreed Tuesday to acquire Affinivax from the United States for $3.3 billion. It is its second significant deal in as many months. The acquisition gives GSK access to Affinivax’s next-generation vaccinations.

GSK was one of the largest vaccine producers in the world. It has had to strengthen its pipeline to meet the demands of consumers, which will be separated from its business.

As demand for shingles has recovered after the outbreak, the drugmaker has become a major growth driver. However, GSK still needs to develop a new vaccine to boost its vaccines business which was worth 6.78 billion pounds (or $8.54 billion).

GSK also faces opposition from vaccine candidates of rivals Pfizer (NYSE: Moderna (NASDAQ) Newer mRNA technology.

GSK will pay Affinivax $2.1B upfront. There are potential milestones of up to $1.2B. GSK indicated last month that it was open to further agreements following the $1.9 billion acquisition of Sierra Oncology (NASDAQ)).

This is a positive step forward in terms of the strategy for the group, but we need to remember that making money and owning treatment are very distinct things.” Hargreaves Laura Hoy, analyst at Lansdown (LON)

GSK London listed on Tuesday reiterated its outlook and medium-term targets for 2022.

GSK receives Affinivax, a private drug that is held by Affinivax, as one of its next-generation vaccines in development. These include those for meningitis and pneumonia.

GSK’s older pneumococcal vaccination, Synflorix was approved by the FDA for use in Europe and America in 2009. It competes with Merck’s Pneumovax and Prevnar from Pfizer.

Affinivax’s more recent vaccine technology has been designed to enhance the strength of immune response against a pathogen.

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