Bellus Health Stock Price, News & Analysis

Bellus Health Inc. was acquired by GSK (GlaxoSmithKline) in June 2023 for approximately $2.0 billion USD ($14.75 per share in cash). The company no longer operates as an independent entity and is now part of GSK's pharmaceutical portfolio.

Prior to the acquisition, Bellus Health was a clinical-stage biopharmaceutical company focused on developing novel therapeutics for chronic cough and other hypersensitization disorders. The company's headquarters were located in Laval, Quebec, Canada, and its common shares traded on the NASDAQ Stock Market under the ticker symbol BLU.

Lead Drug Candidate: Camlipixant (BLU-5937)

The primary asset that attracted GSK's interest was camlipixant (formerly known as BLU-5937), a highly selective P2X3 receptor antagonist being developed for the treatment of refractory chronic cough (RCC). P2X3 receptors are ATP ion-gated channels located on primary afferent neurons and are implicated in cough reflex hypersensitization.

Camlipixant demonstrated significant advantages over competing therapies in clinical trials. The drug showed a 34% reduction in cough frequency in its Phase 2b SOOTHE trial while maintaining a favorable safety profile. Most notably, only 6.5% of patients experienced taste-related adverse events at all doses tested, compared to 58-69% of patients in competing trials for Merck's gefapixant. This selectivity for P2X3 receptors over P2X2/3 receptors (which play a major role in taste perception) represented a potential best-in-class profile.

Following the acquisition, GSK initiated the CALM Phase 3 development program consisting of the CALM-1 and CALM-2 trials for camlipixant, with an anticipated commercial launch in 2026. The drug is being developed as a first-line treatment for adult patients with refractory chronic cough.

Market Opportunity

Chronic cough is defined as a cough lasting longer than eight weeks. When the cause cannot be identified or the cough persists despite treatment of underlying conditions, it is classified as refractory chronic cough. Approximately 9 million patients in the United States suffer from RCC, and prior to recent approvals in Japan and Switzerland, there were no specific therapies approved for this condition globally. Treatment options remain limited, creating substantial unmet medical need.

Company History

Bellus Health was founded in 1993 and spent decades developing therapeutics for respiratory conditions. The company listed its common shares on the NASDAQ in September 2019, completing an offering that raised $79.4 million in gross proceeds. The company operated two wholly-owned subsidiaries: Bellus Health Cough Inc. (incorporated in Canada) and Bellus Health Corp. (incorporated in Delaware).

The company focused its research and development efforts on addressing hypersensitization disorders through targeted receptor antagonism. In addition to chronic cough, Bellus Health explored applications of BLU-5937 for chronic pruritus (chronic itch), though the chronic cough program remained the primary development focus.

Clinical Development

Bellus Health successfully completed multiple clinical trials demonstrating the efficacy and safety of camlipixant. In preclinical studies using guinea pig cough models, BLU-5937 significantly reduced histamine-induced and ATP-induced enhancement of citric acid-induced coughs in a dose-dependent manner. Importantly, in rat behavioral taste models, the compound did not alter taste perception compared to control animals, validating the selectivity hypothesis.

The Phase 2b SOOTHE trial delivered positive results in December 2021, leading the company to prepare for Phase 3 trials. The data from these studies formed the basis for GSK's acquisition of the company in 2023. Under GSK's ownership, the drug candidate continues to advance through late-stage clinical development.

Strategic Rationale for Acquisition

The acquisition positioned GSK to compete directly with Merck in the emerging chronic cough treatment market. While Merck's gefapixant was further along in development at the time of the acquisition, camlipixant's superior tolerability profile (particularly regarding taste disturbance) provided GSK with what analysts considered a potentially differentiated product. The $2.0 billion price tag represented a premium of approximately 103% to Bellus Health's closing stock price on April 17, 2023, reflecting confidence in the asset's commercial potential.

Following shareholder approval on June 16, 2023, GSK completed the acquisition on June 28, 2023. The transaction provided Bellus Health shareholders with immediate liquidity while giving GSK access to a late-stage asset with potential for near-term commercialization. The acquisition also brought on board Bellus Health's development team and scientific expertise in P2X3 receptor biology and chronic cough therapeutics.

Current Status

As a wholly-owned subsidiary of GSK, Bellus Health's former operations have been integrated into GSK's pharmaceutical development and commercialization infrastructure. Camlipixant continues to progress through Phase 3 clinical trials under GSK's sponsorship, with the company targeting regulatory submissions and potential launch in 2026. The BLU ticker symbol remains associated with the legacy of the company's work in developing treatments for patients with refractory chronic cough.