GSK Acquires Elsie Biotechnologies for $50 Million to Elevate Oligonucleotide Pipeline

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GSK has acquired Elsie Biotechnologies, a biotech firm specializing in oligonucleotide therapeutics, in a deal that could reach up to $50 million. Known for possessing the ability to modulate gene expression, oligonucleotide can support targets that traditional drugs cannot reach, according to GSK. They added that the acquisition will enable the integration of Elsie’s technologies with GSK's artificial intelligence (AI) and machine learning (ML) expertise to accelerate the development of oligonucleotide drugs for challenging diseases.¹

“We have already made great strides in oligonucleotide drug development through our work in chronic hepatitis B and steatotic liver disease and are thrilled to work alongside the talented team at Elsie to accelerate a next-generation oligonucleotide platform. By bringing together Elsie’s expertise and our internal capabilities, we can design and develop oligonucleotides for difficult-to-treat diseases of scale with larger patient populations,” said Tony Wood, chief scientific officer, GSK, in a press release.

GSK and Elsie first announced a research collaboration in July 2023, with the aim of advancing the discovery and development of Elsie’s oligonucleotide discovery platform, focusing on novel oligonucleotides optimized for safety, efficacy, and delivery. As part of the initial agreement, the companies explored capabilities of the platform, with GSK having the opportunity to exercise a non-exclusive license option regarding the discovery platform and P(V) chemistry technologies for its own oligonucleotide drug discovery research.

Elsie’s discovery platform enables the complete evaluation of oligonucleotide chemical space, according to GSK. The platform functions by applying proprietary encoding technology to oligonucleotide therapeutic candidates, which provides the opportunity to increase activity, reduce toxicity, and improve delivery. P(V) chemistry helps to synthesize diverse oligonucleotide therapeutics with complete synthetic control.²

"Our next generation oligonucleotide therapeutics, which include RNA medicines, enable new opportunities to treat intractable human diseases, including those with no current or limited therapeutic options. This collaboration combines GSK’s expertise as leaders in the field of DNA encoded library technologies with the unique capabilities of Elsie’s scientists and discovery platform with P(V) chemistry with the goal to discover new RNA medicines,” said Kevin Green, chief operating officer, Elsie Biotechnologies, in a press release.

In April, Research and Markets reported that the Global Oligonucleotides Market is expected to be valued at approximately $11.7 billion by 2028, with a compound annual growth rate of 11%. In 2023, the market was valued at around $7 million. Since 1998, 15 different drugs with oligonucleotide have received FDA approval, with indications in the treatment of liver, spinal cord, and skeletal muscle-based disorders. Regarding oncology, over 200 treatments are currently in various stages of clinical trials.³

The acquisition of Elsie Therapeutics is not subject to any closing terms and has been officially completed. At this time, GSK said it is aiming to create oligonucleotide therapies for chronic hepatitis B and steatotic liver disease, with plans to expand into other therapeutic areas.¹

“We are thrilled to be a part of GSK and work alongside the talented R&D team dedicated to oligonucleotide drug development. We believe our platform will make significant contributions to the field and we believe GSK is the best partner to help advance this effort,” said Green, in the press release.

References

1. GSK accelerates oligonucleotide platform and pipeline medicines with acquisition of Elsie Biotechnologies. GSK. June 6, 2024. Accessed June 6, 2024. https://www.gsk.com/en-gb/media/press-releases/gsk-accelerates-oligonucleotide-platform-and-pipeline-medicines-with-acquisition-of-elsie-biotechnologies/

2. Elsie Biotechnologies Announces Collaboration with GSK to Accelerate Oligonucleotide Discovery Technologies. Elsie Bio. July 10, 2023. Accessed June 6, 2024. https://www.elsiebio.com/news/elsie-biotechnologies-announces-collaboration-with-gsk-to-accelerate-oligonucleotide-discovery-technologies

3. Oligonucleotides Global Markets Report 2023-2024 & 2028: Competitive Landscape, Patent Analysis, M&A Analysis, Funding Outlook, Industry Structure. Yahoo! Finance. April 3, 2024. Accessed June 6, 2024. https://finance.yahoo.com/news/oligonucleotides-global-markets-report-2023-091500749.html