GSK to sell Australian generic portfolio to Aspen Pharma

16 Aug 2012

GlaxoSmithKline (GSK) yesterday agreed to sell the rights to several of its products in Australia to South Africa's Aspen Pharmacare Holdings Ltd for nearly $S270 million, as part of the British drugmaker's plan of streamlining its consumer health portfolio.

Under the deal, London-based GSK, which holds an 18.6-per cent stake in Aspen, will sell a majority of its Classic Brands - a group of 25 non-promoted and genericised products in Australia, including Amoxil, Augmentin, Imigran, Kapanol, Lamactil, Mesasal, Timentin, Valtrex, Zantac and Zofran.

The main areas of therapeutic treatment of the divested brands are analgesic, antibiotics, anti-virals and the central nervous system.  Other areas covered include anti-nauseant, anti-inflammatory and muscle relaxants. 

GSK said that these brands generated total sales of around £83 million in 2011 and around £31 million in the first half of 2012. 

The net cash proceeds from the transaction are expected to be around £155 million, with net profit estimated to be around £31 million.

The sale come eight months after GSK sold the rights to several products, including Phillips MOM, Solpadeine, Dequadin, Cartia and Zantac to Aspen for £164 million.