GSK to buy 35Pharma for $950 million in CEO Miel’s second major deal

GSK has agreed to pay $950 million in cash for Canadian biotech 35Pharma, it said on Wednesday, marking the second major deal new CEO Luke Miels has struck to accelerate development of new medicines at the British drugmaker.
Miels, who took over from Emma Walmsley last month, is trying to counter looming patent expiries for the drugmaker’s top-selling HIV drugs through bolt-on deals. GSK agreed to buy RAPT Therapeutics for $2.2 billion in January.
The latest acquisition of 35Pharma’s experimental pulmonary hypertension drug, HS235, will bolster GSK’s future pipeline of respiratory medicines.
Pulmonary hypertension is a life-shortening disease marked by high blood pressure in the lungs that affects more than 80 million people globally. Current treatments include Merck’s injectable treatment Winrevair.
GSK shares have risen nearly 21% so far this year and have staged a strong recovery compared to several European rivals after a turbulent 2025.
Miels has said GSK will keep its focus on the downstream effects of obesity like liver and heart diseases, since the obesity treatment market is becoming increasingly crowded.
HS235 is in early-stage development to treat the condition in obese patients with a type of heart condition, as well as in patients who have previously received treatment for pulmonary hypertension.
In studies of obese mice with a heart condition known as preserved ejection fraction, the drug selectively reduced fat mass and boosted heart function. If successful in clinical trials, the injectable drug could be given once every four weeks or potentially less often.
GSK also agreed to an up to $1 billion deal on Tuesday for global rights to develop Frontier Biotechnologies’ therapies that target kidney diseases.