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Monday 27th of July 2009
April 20, 2009

GSK buys Stiefel to create enlarged dermatology business


by Kay Murchie
”GSK

GlaxoSmithKline (GSK), Britain’s largest drugs company, has agreed to buy Stiefel Laboratories in a deal worth $3.6 billion (£2.5 billion). GSK is paying $2.9 billion in cash and will take on $400 million of Stiefel’s net debt.

Stiefel, the US skincare specialist based in Florida, produces skin treatments for acne and psoriasis. The group is partly-owned by Blackstone Group, the private equity house.

The deal will give GSK an enlarged dermatology business, creating a unit with annual sales of $1.5 billion and 8% of the world market for prescription skin treatments, according to the pharmaceutical giant.

Andrew Witty, GSK’s newly-appointed CEO, said: “The addition of Stiefel’s broad portfolio will provide immediate new revenue flows to GSK with significant opportunities to enhance growth through leveraging our existing global commercial infrastructure and manufacturing capability.”

Mr Witty added that “This transaction will create a new world-leading, specialist dermatology business and re-energise our existing dermatology products.”

The latest move is further consolidation within the industry after Merck bought rival Schering-Plough last month in a $41.1 billion (£30 billion) deal. The acquisition created the world’s number 2 pharmaceuticals giant with combined revenues of $47 billion.

Furthermore, in January, Pfizer acquired rival Wyeth in a deal worth $68 billion and at the time, analysts said the take over will trigger a long-predicted wave of consolidation in the industry since drugs companies are experiencing a fall in sales as many drugs are losing their patent protection.

Following the news, shares in GSK rose 0.6% to 1044.5p on but closed just over 0.4% at 1033.5p. The company is valued at £54 million.

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Tags: , , dermatology business, GlaxoSmithKline, GSK, , patent, Stiefel Laboratories

 

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