Aspen Offers to Buy Glaxo Heart Medicines for $1.1 Billion

Aspen Pharmacare Holdings Ltd. (APN) offered GlaxoSmithKline Plc (GSK) about 700 million pounds ($1.1 billion) for branded heart medicines Arixtra and Fraxiparine and a related manufacturing site.

The price includes about 100 million pounds for inventory and talks haven’t finished, Johannesburg-based Aspen said in a statement today. Glaxo said June 18 it got a bid from Aspen for the treatments.

Arixtra and Fraxiparine are part of a portfolio of more than 50 older products that Glaxo has carved out into a separate unit. The two drugs generated about 420 million pounds in global revenue in 2012 compared with 510 million pounds the previous year, Simon Steel, a spokesman for London-based Glaxo, said by phone June 18. The sale would exclude rights in China, India and Pakistan.

Aspen shares rose 2 percent to close at 219.60 rand in Johannesburg, the biggest gain in a week. Glaxo closed 0.5 percent higher at 1,681 pence in London.

The U.K.’s biggest pharmaceutical company, based in Brentford, owns a 19 percent stake in Aspen, a maker and distributor of generic medicines. Aspen agreed to buy pharmaceutical and over-the-counter brands from Glaxo in two separate transactions last year.

To contact the reporter on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

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