GSK acquires Croatian research institute
GlaxoSmithKline (GSK) has bought the proprietary R&D arm of PLIVA, in Zagreb, Croatia, which is renowned for its research into macrolides.
GlaxoSmithKline (GSK) has bought the proprietary R&D arm of PLIVA, in Zagreb, Croatia, which is renowned for its research into macrolides.
The deal, which is subject to regulatory approvals, will see GSK pay an upfront payment of US$35m and, on the entry of certain early stage projects into clinical development, further payments totalling up to US$15m. The total potential cash consideration may be as much as US$50m. PLIVA will also receive royalties on commercialisation of certain assets.
GSK will take on all 130 employees of the PLIVA Research Institute and will gain full ownership of the company, including all intellectual property and certain other assets, such as an oncology early-stage clinical asset and pre-clinical compounds emerging from the macrolide research.
Allan Baxter, senior vice-president of drug discovery at GSK, said the institute would help in the discovery of new chemical entities across several therapeutic areas.
Zeljko Covic, ceo and president of PLIVA's Management Board said PLIVA could now focus on its generics business, which it believes will deliver greater value to shareholders. The company employs some 450 dedicated R&D employees.