Last checked at 
LONDON (Alliance News) - GlaxoSmithKline PLC said Monday it will acquire oncology-focused US pharma business Tesaro Inc for USD5.1 billion in cash.
Tesaro is a commercial-stage biopharma company and its marketed product Zejula is currently approved for treatment of ovarian cancer in both the US and Europe. Zejula is also being investigated for its potential use in breast, lung, and prostate cancer patients.
The FTSE 100-listed medicine maker will pay USD75 per share in cash for Tesaro. It will also assume Tesaro's net debt under the deal.
Revenue from Zejula for the nine months to September 30 was USD166 million.
The Tesaro acquisition is expected to have a mid-to-high single digit impact on Glaxo's adjusted earnings per share for the first two years before becoming accretive to adjusted earnings per share by 2022.
Glaxo's guidance remains unchanged for 2018 but following the acquisition it expects the adjusted earnings per share growth at constant exchange for the 2016 to 2020 period to be "at the bottom end" of the mid-to-high single digit percentage compound annual growth rate range.
"The acquisition of TESARO will strengthen our pharmaceuticals business by accelerating the build of our oncology pipeline and commercial footprint, along with providing access to new scientific capabilities. This combination will support our aim to deliver long-term sustainable growth and is consistent with our capital allocation priorities. We look forward to working with TESARO's talented team to bring valuable new medicines to patients," said Glaxo Chief Executive Emma Walmsley.
The deal will be funded by Glaxo from existing cash resources and drawing under a new acquisition facility.
Shares in Glaxo were down 3.5% at 1,564.20 pence on Monday.
