Pharma BD Deal Intelligence

GlaxoSmithKline plc / Tesaro Inc.

2018 · Acquisition/Merger · $5.1B · Complete

A rich-multiple acquisition that looked overpaid at signing—GSK paid $5.1 billion for Zejula, a PARP inhibitor franchise that has since plateaued—but the pipeline redeemed it: dostarlimab (Jemperli) hit roughly £600 million in FY2025 sales, up 89% year-over-year.

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The coverage arc

Dec 03, 2018 BioSpace Neutral

GlaxoSmithKline agreed to acquire TESARO, Inc. for $75 per share in an all-cash transaction valued at approximately $5.1 billion, gaining the PARP inhibitor…

Dec 16, 2024 GSK: Jemperli FDA Breakthrough Therapy Designation, dMMR/MSI-H rectal cancer Bullish

Jemperli (dostarlimab) received US FDA Breakthrough Therapy Designation for locally advanced dMMR/MSI-H rectal cancer; 100% clinical complete response in all…

Feb 04, 2026 GSK FY2025 Results Announcement Neutral

FY2025: Jemperli (dostarlimab) sales ~GBP 600M, +89% YoY driven by endometrial cancer expansion; Zejula GBP 419M, -7% YoY on US volume/price pressure and IRA…

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GSK acquired Tesaro for approximately $5.1 billion in cash ($75.00 per share) via tender offer and merger (announced 3 Dec 2018, completed 22 Jan 2019), gaining Zejula (niraparib), an oral PARP inhibitor for ovarian cancer, plus the then-early-stage anti-PD-1 antibody dostarlimab (TSR-042) and additional immuno-oncology pipeline assets. The deal was widely criticized at signing as a rich multiple (~22.9x trailing revenue) for a Zejula franchise that has since plateaued and declined (FY2025 Zejula sales GBP 419M, down 7% on US volume/price pressure, IRA Part D redesign, and a 2022 FDA label restriction). The deal's value has instead come from the pipeline: dostarlimab, marketed as Jemperli, reached ~GBP 600M in FY2025 (+89% YoY) on endometrial-cancer expansion and carries a >$2.5B 2030 sales ambition. In December 2024 Jemperli received FDA Breakthrough Therapy Designation in locally advanced dMMR/MSI-H rectal cancer after a trial reported a 100% clinical complete response in all 42 patients who completed treatment, with a pivotal readout expected in 2H 2026 and a potential filing in 2027 — a pipeline optionality that materially offsets the original 'overpaid for a niche PARP asset' critique.

Key facts

Disease & market context

Breast Cancer

310K US cases/yr · $35.0B Global breast cancer therapeutics

Disease Overview

Breast cancer is the most common cancer in women worldwide. Treatment is guided by molecular subtype: HR+/HER2-, HER2+, and triple-negative. CDK4/6 inhibitors have transformed HR+ metastatic disease, and ADCs are reshaping later-line treatment.

Standard of Care & Competitive Landscape

HR+/HER2-: CDK4/6 inhibitor + endocrine therapy. HER2+: trastuzumab + pertuzumab + chemo, T-DXd in 2L+. TNBC: pembrolizumab + chemo. Key players: Pfizer (Ibrance), Lilly (Verzenio), Novartis (Kisqali), Daiichi Sankyo/AZ (Enhertu), Gilead (Trodelvy).

Prostate Cancer

300K US cases/yr · $18.0B Global prostate cancer therapeutics

Disease Overview

5-year relative survival ~97.9% overall; ~37.9% for distant (metastatic) disease per SEER 2015-2021.

Standard of Care & Competitive Landscape

Localized: surgery, radiation, active surveillance. mHSPC: ADT + abiraterone or enzalutamide. mCRPC: abiraterone, enzalutamide, PARP inhibitors, Lu-177 PSMA. Key players: J&J (Erleada, Zytiga), Pfizer (Xtandi), AZ (Lynparza), Novartis (Pluvicto), Bayer (Nubeqa).

Lung Cancer

200K US cases/yr · $30.0B Global NSCLC therapeutics

Disease Overview

5-year relative survival ~28% overall; ~10% for distant-stage (SEER 2015-2021)

Standard of Care & Competitive Landscape

No driver mutation: pembrolizumab +/- chemo. EGFR+: osimertinib. ALK+: alectinib, lorlatinib. KRAS G12C: sotorasib. Key players: Merck (Keytruda $25B+), Roche (Tecentriq), AZ (Tagrisso $5B+, Imfinzi), Pfizer (Lorbrena), Amgen (Lumakras).

Ovarian Cancer

20K US cases/yr · $5.0B Global ovarian cancer therapeutics

Disease Overview

Ovarian cancer is the deadliest gynecologic malignancy. PARP inhibitors have transformed maintenance therapy for BRCA-mutated and HRD-positive disease. Most patients present at advanced stages.

Standard of Care & Competitive Landscape

Surgery + platinum-based chemo. Maintenance: PARP inhibitors (olaparib, niraparib) for HRD+. Bevacizumab in combination. Key players: AZ/Merck (Lynparza), GSK (Zejula), Clovis (Rubraca), Roche (Avastin).

Deal timeline

Related deals — scored

DealYearValueOutcome
GlaxoSmithKline plc / Tesaro Inc. (this deal)2018$5.1B79
GlaxoSmithKline plc / Theravance, Inc.2012$213M82
GlaxoSmithKline plc / Pfizer Inc. (Consumer Healthcare Division)2018$12.7B76
GlaxoSmithKline plc / Novartis Consumer Healthcare JV2018$13.0B74
GlaxoSmithKline plc / ID Biomedical Corporation2005$1.4B64
GlaxoSmithKline plc / Vir Biotechnology Inc.2020$595M51
GlaxoSmithKline plc / Reliant Pharmaceuticals Inc.2007$1.6B47

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