GSK.US will invest $1.15 billion to acquire IDRx, expanding its cancer treatment capabilities.

British pharmaceutical company GlaxoSmithKline (GSK.US) announced on Monday that it would acquire U.S. biotechnology company IDRx for $1.15 billion, including a $1 billion upfront payment. The deal comes after reports that GSK was in talks to buy IDRx, which could be valued as high as $1 billion. According to the information, IDRx is developing an experimental drug for gastrointestinal stromal tumors. The acquisition will further expand GSK's growing portfolio of cancer products. GSK's Chief Commercial Officer Luke Miels said in a statement, "This acquisition aligns with our approach to acquiring assets, even when there are approved products, that target effective targets and have clear unmet medical needs." GSK has been struggling with the decline of its vaccine business and has expanded its cancer drug business in recent years, including deals with Hansoh Pharma and Sierra Oncology. These efforts have already started to pay off, with the sales of its bone marrow cancer drug Ojjaara exceeding expectations, and another blood cancer drug, Blenrep, showing positive results. GSK is seeking to relaunch the sales of Blenrep, which it had previously withdrawn from the market, and expects its annual sales potential to exceed £3 billion (approximately $3.7 billion).