GSK extends strategic collaboration with Aspen

GlaxoSmithKline (GSK) is to extend its strategic relationship with Aspen Pharmacare Holdings and to acquire a 16% shareholding in the South Africa-based pharmaceuticals company. This is part of a wide-ranging agreement that includes combining commercial activities in Sub-Saharan Africa and the transfer of several assets to Aspen.

GSK will divest eight specialist medicines to Aspen (Alkeran (excluding US), Kemadrin, Lanvis, Leukeran, Myleran, Purinethol, Septrin and Trandate) and a manufacturing facility located in Bad Oldesloe, Germany. Combined sales of these products were £56m in 2008. The 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 vast majority of combined current sales in Sub-Saharan Africa (approximately £65m in 2008) 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 GSK's commercial infrastructure.

In South Africa, where Aspen has extensive commercial capability, GSK will transfer marketing and distribution rights to Aspen for its pharmaceutical products. In 2008, sales of these pharmaceutical products were approximately £45m.

Abbas Hussain, president of emerging markets at GSK, said: "Extending our strategic relationship with Aspen supports GSK's strategy to accelerate sales growth in emerging markets. The combination of our commercial activities in Sub-Saharan Africa is highly complementary and will mean that together we can provide more medicines of value to more patients in these countries."