GlaxoSmithKline sells Australian brands to Aspen
Twenty-five brands had sales of £83m in 2011
GlaxoSmithKline (GSK) is selling 25 of its Australian brands to South African generics firm Aspen Global for approximately £172m in cash.
The Australian brands being sold, which include Herpes treatment Valtrex, anti-epilepsy drug Lamictal, antibiotics Timentin and Amoxil, and anti-depressant Aropax, generated sales of around £83m in 2011 and £31m in the six months of 2012.
GSK expects the sale to be completed in the fourth quarter, subject to regulatory approvals, with net cash proceeds of approximately £155m.
The UK pharmaceutical manufacturer said revenues for these products have gradually declined in recent years due to local market price reductions and generic competition.
GSK added that the sale is part of its aim to sell low growth or non-core businesses and to focus on ‘priority brands, products and pipeline opportunities that have long-term growth potential’.