A $950M Play: GSK Bets on Late Stage Promise

GSK acquires 35Pharma for $950M, betting on a pulmonary hypertension drug and reigniting big pharma deal momentum

3 Mar 2026

The biotech deal machine, quiet for much of the past two years, is creaking back to life. GSK’s decision to pay up to $950m for 35Pharma, a small firm developing treatments for pulmonary hypertension, is less a gamble than a calculated purchase of reassurance.

At the centre of the deal is HS235, a therapy for a serious disorder that strains the lungs and heart. Treatment options remain limited, and long-term outcomes are poor. Crucially for GSK, the drug has already entered clinical testing. That shifts it beyond the most speculative phase of drug development and offers at least some human data on safety and effect.

Big pharmaceutical firms have grown wary of early-stage science projects with distant pay-offs. Instead, they are hunting for assets in mid-stage development, where regulatory paths are clearer and commercial prospects easier to model. The aim is not bold discovery but controlled replenishment of pipelines.

For GSK the acquisition fits a broader strategy. The company has been sharpening its focus on respiratory and immune-related diseases. If approved, HS235 would strengthen its hand in a cardiopulmonary market that has drawn interest from rivals including Merck and Novo Nordisk. Competition is intensifying just as several large drugmakers face looming patent expirations and slower organic growth.

The timing is telling. After a lull in biotech transactions, valuations have steadied. Large firms, under pressure to secure future revenues, are returning to selective dealmaking. Yet this is not a return to the exuberance of past cycles. Transactions are narrower, centred on defined assets rather than sweeping platform bets.

For 35Pharma the benefits are obvious. Late-stage cardiovascular trials are expensive and complex. A global group such as GSK brings capital, regulatory expertise in America and Europe, and the infrastructure to run multinational studies. That support can improve the odds of eventual approval.

Still, pulmonary-hypertension trials are closely scrutinised. Regulators will demand clear evidence of safety and benefit. Even if approved, pricing pressures in large markets could curb returns.

The lesson for biotech firms is plain. In a cautious market, credible clinical data and a plausible commercial path matter more than grand visions. For big pharma, disciplined shopping has replaced speculative spree.