GSK to acquire 25% stake in Aspen Japan

Under the terms of agreement, GSK will buy 25% stake in Aspen Japan, while the remaining 75% stake would be held by Aspen.

AGI said in a statement: "It is intended that Aspen Japan will, where feasible, be the conduit through which the Group will conduct its commercial operations in Japan in a strategic alliance with GSK."

As part of the deal, AGI will transfer the marketing authorisations and grant perpetual distribution rights to Aspen Japan for all products currently being marketed and distributed on behalf of Aspen in Japan.

The company will also provide Aspen Japan with the rights to all future products that it purchases or licenses in the country.

On the other hand, GSK will transfer the marketing authorisations and grant distribution rights for certain mature products in its portfolio, as well as a pipeline of authorised generics of several of its products, including Augmentin to Aspen Japan.

GSK Japan president Philippe Fauchet was quoted by CNBC Africa as saying: "This agreement demonstrates our ability to be flexible in order to optimise our product portfolio.

"We have a long-standing global relationship with Aspen and are confident that they are best-placed to partner us under this initiative.

"Importantly, the inclusion of authorised generics within the scope of the agreement also supports the Japanese government’s objective of increasing accessibility and affordability of medicines."

The two companies make total initial cash investment of £14m, of which GSK alone would contribute £3.5m, reflecting its 25% holding in the new company.

Subject to necessary approvals by Japanese regulatory authorities, the transaction is expected to be completed by the end of 2015.

Image: GlaxoSmithKline has signed an agreement to acquire 25% equity stake in Aspen Japan. Photo: Beyond My Ken.