GSK agreed to Pay $3.3 Billion for Affinivax Inc

GSK will pay up to $3.3 billion to acquire vaccine maker Affinivax Inc. in a deal to provide new vaccine technology for the UK pharmaceutical giant for common bacterial infections such as meningitis and pneumonia. 

The UK pharmaceutical company, formerly known as GlaxoSmithKline, has paid $2.1 billion in advance to acquire a Boston-based company, an additional $1.2 billion in so-called milestones if Affinivax achieves certain goals. 

The Affinivax technology was developed by doctors at Children's Hospital in Boston. Its most advanced candidates target 24 different species of Streptococcus pneumonia, a family of bacteria behind diseases such as meningitis, pneumonia, and sepsis, in a single shot.

This transaction is the largest GSK vaccine transaction since 2015, when it acquired Novartis AG's vaccine business for $5.25 billion, as part of a larger, three-part transaction, including the British company selling its marketed cancer medicines to its Swiss rival and combining their consumer health care businesses.