Issued: Monday 30 September 2013, London UK - LSE Announcement
GlaxoSmithKline reaches agreement with Aspen to divest thrombosis brands and related manufacturing site for £0.7 billion
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- Divestment supports strategic focus and delivery of pipeline
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GlaxoSmithKline (LSE:GSK) today announced it has reached agreement to sell its thrombosis brands, Arixtra® and Fraxiparine®, and the Notre-Dame de Bondeville (NDB) manufacturing site to The Aspen Group (Aspen), the South African pharmaceuticals company, for £0.7 billion in cash, of which £0.1 billion relates to inventory. The agreement is a further example of GSK's commitment to increase focus on products with the most growth potential and the delivery of its late-stage pipeline.
The net cash proceeds from the transaction after tax and transaction costs are expected to be approximately £0.6 billion. The proceeds will be used for general corporate purposes. The net profit on disposal will be excluded from core operating profit and core EPS in 2013.
Aspen will acquire global rights to the Arixtra® and Fraxiparine® brands (excluding China, India and Pakistan) and certain dedicated commercial employees, along with the related NDB manufacturing site and the majority of employees at NDB in France.
In Indonesia, GSK will continue to distribute and market the brands under licence from Aspen. S
ubject to regulatory approvals, it is expected that the majority of commercial operations will transfer to Aspen by the end of the year with the remainder, along with the NDB site, to follow in the first half of 2014. Total sales of these products in the territories subject to this transaction were £177 million in the first half of 2013.
David Redfern, Chief Strategy Officer, GSK, said:
"Arixtra® and Fraxiparine® are established products that have consistently delivered strong revenues. However, our focus is on delivering an unprecedented late-stage pipeline and preparing for the launch of approved medicines. Aspen is a long-term partner of GSK and will be able to dedicate the resources that these products deserve to take them forward. Importantly, we are pleased to be able to preserve the vast majority of jobs through this agreement."
GSK already has an 18.6% holding in Aspen, a leading generics manufacturer in the southern hemisphere and Africa's largest pharmaceutical manufacturer.
S M Bicknell
Company Secretary
30 September 2013
Notes to editors
GlaxoSmithKline - One of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com.
About Aspen - Aspen, listed on South Africa's JSE Limited, continues to increase the number of lives benefiting from its products, reaching approximately 150 countries across the world. The extensive basket of Aspen products provides treatment for a broad spectrum of acute and chronic conditions experienced throughout all stages of life. Aspen is ranked as Australia's number one generic pharmaceutical company and has 17 manufacturing facilities at 12 pharmaceutical manufacturing sites on six continents and approximately 7,400 employees.
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Cautionary statement regarding forward-looking statements
GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect GSK' s operations are described under Item 3.D 'Risk factors' in the company's Annual Report on Form 20-F for 2012.
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