GlaxoSmithKline is to acquire the Egyptian mature products business of Bristol Myers Squibb for US$210m (£125m, Euro 156m) in a move to accelerate sales growth and further extend its pharmaceutical portfolio in emerging markets.
As a result of the acquisition, GSK will become the leading pharmaceutical company in Egypt with a market share of approximately 9%. It will acquire 20 branded products that occupy leading market positions in four therapeutic disease areas in Egypt, including Duricef (antibiotic); Capozide and Capoten (ACE inhibitors); Theragran-H (iron supplement) and Kenacomb (topical steroid).
Total sales of this combined mature products pharmaceuticals business in 2007 were $48.5m (£28m; â"šÂ¬36m). GSK will also take ownership of BMS's high quality manufacturing facility in Giza (Greater Cairo) that will continue to supply the acquired products.
An additional consequence of the acquisition will be GSK's ability to export generic versions of the acquired products to markets outside Egypt, thereby creating a further opportunity to drive sales growth in the Middle East and North Africa region.
"This acquisition is an important step forward in GSK's strategy to accelerate sales growth in emerging markets," said Abbas Hussain, president emerging markets, GSK. "It will enable us to build and diversify our existing branded pharmaceuticals portfolio and signals our strong commitment to provide quality medicines to patients in Egypt and other countries in the Middle East and North Africa region."
Completion of the acquisition is expected by the end of October 2008, and follows GSK's agreement with South African based pharmaceuticals company Aspen in July 2008, which significantly extended GSK's pharmaceuticals portfolio in emerging markets.