GlaxoSmithKline has agreed to extend its strategic relationship with Aspen Pharmacare Holdings and to acquire a 16% shareholding in the South African based pharmaceutical company. This is part of a wide ranging agreement which includes combining commercial activities in Sub-Saharan Africa and the divestment of several assets to Aspen.
Under the terms of the agreement, GlaxoSmithKline (GSK) and Aspen will collaborate on the commercialization of their current and future product portfolios in Sub-Saharan Africa (excluding South Africa). The vast majority of combined current sales in this region are attributable to GSK.
Going forward, the collaboration will build a broader and more diverse portfolio for these countries, with Aspen’s extensive pipeline of new products expected to benefit from greater leverage through GSK’s existing commercial infrastructure. In South Africa, where Aspen has extensive commercial capability, GSK will transfer marketing and distribution rights to Aspen for its pharmaceutical products.
On completion, Aspen will issue 68.5 million new shares as non-cash consideration to GSK in exchange for the transfer of several assets. These shares will be equivalent to a 16% shareholding in the company; and Aspen has a current total market capitalization value of GBP1.4 billion. As part of the agreement and on closure of the transaction, Aspen will appoint a non-executive director, nominated by GSK, to its board of directors.
GSK will divest eight specialist medicines to Aspen and a manufacturing facility located in Bad Oldesloe, Germany. The products to be divested are Alkeran (excluding US), Kemadrin, Lanvis, Leukeran, Myleran, Purinethol, Septrin and Trandate. The Bad Oldesloe manufacturing site produces some of the products to be divested and a number of other products previously acquired by Aspen from GSK in June 2008.
The agreement is subject to regulatory approvals and is expected to complete before the end of 2009.