GlaxoSmithKline sells brands, plant to Aspen Group
GlaxoSmithKline has reached agreement to sell its thrombosis brands, Arixtra and Fraxiparine, and the Notre-Dame de Bondeville (NDB) manufacturing site to the Aspen Group, a South African pharmaceuticals company, for $1.13 billion in cash, of which $161.9 million relates to inventory.
The net cash proceeds from the transaction after tax and transaction costs are expected to be approximately $971.6 million.
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 license from Aspen. Subject to regulatory approvals, it is expected 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.
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. Importantly, we are able to preserve the vast majority of jobs through this agreement.”
GSK has an 18.6% holding in Aspen, a generics manufacturer in the southern hemisphere and Africa’s largest pharmaceutical manufacturer.