Glaxo Gets Offer for Heart Drugs With Declining SalesMakiko Kitamura
GlaxoSmithKline Plc received an offer from Aspen Pharmacare Holdings Ltd. for branded heart medicines Arixtra and Fraxiparine and a related manufacturing site as it seeks to sell older medicines with declining sales.
The products generated about 420 million pounds ($656 million) in global revenue in 2012 compared with 510 million pounds the previous year, Simon Steel, a spokesman for London-based Glaxo, said by phone today. The sale excludes rights to the products in China, India and Pakistan, Glaxo said in a statement.
Arixtra and Fraxiparine are part of a portfolio of more than 50 older products that Glaxo has carved out into a separate unit, according to Steel. The decision follows a similar move by Pfizer Inc., which is considering splitting its branded and generic-drug businesses into separate units.
“The proposed transaction is aligned to Glaxo’s strategy of focusing on products with the most growth potential and the delivery of its pipeline,” the company said.
Aspen shares rose 4.4 percent to close at 193.25 rand in Johannesburg. Glaxo fell 0.6 percent to 1,676 pence in London.
Glaxo owns a 19 percent stake in Aspen, a Johannesburg-based 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 boost its expansion in Australia, South Africa and Brazil.
The manufacturing site tied to the sale of the drugs is located in Notre Dame de Bondeville in northern France, according to Glaxo, which declined to disclose the financial terms of the sale.