GSK buys Stiefel to protect sales as patents expire
Tuesday 21 April 2009
GlaxoSmithKline has bought the US skin care therapy group Stiefel for $3.6bn (£2.5bn), it said yesterday, as the pharmaceuticals giant looks to replace sales it will lose when some of its biggest selling treatments lose patent protection over the next few years.
Stiefel will be merged into GSK's own skin products unit to operate as a business within GSK, and is expected to generate revenues of $1.5bn based on 2008 sales, giving the group an 8 per cent share of the dermatology market.
"As part of our strategy to grow and diversify GSK's business, we are continuing to make new investments through targeted acquisitions," said Andrew Witty, GSK's chief executive. "This transaction will create a new world-leading, specialist dermatology business and re-energise our existing dermatology products."
Mr Witty again stressed that the group intends to continue doing small deals in specialist areas to protect long-term revenues, rather than engaging in mega-merger transactions of the type that have been favoured by other big pharmaceutical companies.
Drugs companies are being forced to act as their established treatments lose patent protection and are copied by generics drugs firms.
"The deal is certainly in keeping with GSK's strategy of avoiding the mega-merger, and opting instead for smaller deals in specialist markets," said Jeremy Batstone-Carr, head of research at Charles Stanley.
GSK's acquisition of Stiefel follows last week's deal with US drugs giant Pfizer to create a new specialist HIV company that will combine the two company's treatments and patented drug development projects. The company is scheduled to announce its first-quarter results tomorrow.
Culinary experts in The Netherlands thought it was 'fresh' and 'tasty'
- 1 Marijuana use by teenagers does not result in a lower IQ or worse exam results, study finds
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 NHS staff banned from drinking tea or coffee on the job because it looks like they're not working hard enough
Renee Zellweger on plastic surgery: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
Kim Jong-un 'purge': Six North Korea officials missing for weeks 'may have been executed'
Diwali: What is the festival of lights – and how is it celebrated around the world?
Nathan Cirillo: Final pictures emerge of soldier moments before he was shot dead by Ottowa gunman
Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
iJobs Money & Business
£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...
120-150k: Accountancy Action: We are looking for an experienced CFO from a min...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...