The largest drug maker in Britain, GlaxoSmithKline, has agreed to sell its thrombosis drug brands and the factory where the products are manufactured, to Aspen Pharmacare. It is part of GSK’s plan to focus growth on products. The transaction is said to be worth 700 million pounds, or $1.13 billion U.S. dollars.
On Monday, GSK said the transfer to South Africa’s largest generic drug maker would earn proceeds exceeding 600 million pounds. It indicated that the other 100 million pounds of the price would be related to inventory.
GSK had indicated a transaction involving the thrombosis related drugs could be possible back in June. The transaction involves two drugs, the Arixtra and Fraxiparine brands. Both drugs, which are injectable, have declining sales worldwide. Having kept the products would have dragged down GSK’s growth levels at a time when new drugs are planned to hit the market.
GSK has said it will keep the rights to both thrombosis drugs in China, India, and Pakistan. GSK owns an 18.6% interest in Aspen. GSK indicated that the sale proceeds will go toward general corporate purposes. GSK sold other products, Lucozade and Ribena drink brands, to Japan’s Suntory Beverage & Food Ltd. in early September for 1.35 billion British pounds.
Analysts believe that more products may be sold off as GSK works to focus on product growth. By keeping fewer products, and ensuring they are stronger products, GSK has the potential for growth and a more significant increase in profits.
GSK, which was founded in 2000, is headquartered in London, England. On Monday morning, shares were down 0.14% to $50.41. The company is known as a multinational pharmaceutical, biologics, vaccines and consumer healthcare company.
Aspen, which is based in Johannesburg, supplies medicine to more than 150 million countries. For the year through June, Apsen has reported sales of $1.9 billion U.S. dollars. Apsen shares fell 1.2% to 265 rand in Johannesburg, cutting this year’s gain down to 57%. The company is valued at 120.8 billion rand, which is the equivalent of $11.9 billion U.S. dollars.