GlaxoSmithKline has reached an agreement with India-based Sun Pharma to sell GSK’s opiates business in Australia, including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory, to a subsidiary of Sun Pharma.
The product portfolio consists of poppy-derived opiate raw materials that primarily are used in the manufacture of analgesics for the treatment of moderate to severe pain. All employees from both sites will maintain employment in the opiates business under Sun Pharma.
The transaction allows GSK to simplify its operations in Australia and allow it to focus on delivering an innovative product portfolio that will be central to the company’s growth strategy.
Steve Morris, general manager, GSK Opiates, said, “The opiates business has been an important part of our Australian business for many years, but as our portfolio transitions, we believe now is the right time to hand this business over to someone else. Sun Pharma has an established footprint in this market and, with the addition of our highly skilled employees, I believe they are well-placed to take the business forward.”
Iftach Seri, executive vice president of API business at Sun Pharma, said, “The global opiates market holds good potential and the addition of GSK’s opiates business will strengthen our positioning further. The acquisition is a part of our strategy toward building our portfolio of opiates and accessing strong capabilities in this segment.”
The financial terms of the transaction have not been disclosed. The transaction is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015.