South Africa’s Aspen Pharmacare has bought a portfolio of 25 medicines from GlaxoSmithKline in a deal worth $263 million.
Aspen announced today that the deal – originally agreed in August of this year – has now been completed as Australian authorities gave their approval, with the deal finalising at $263 million, according to Reuters.
The portfolio acquired comprises 25 pharmaceutical products, largely analgesic, antibiotics, anti-viral treatments, as well as products dealing with the central nervous system. Highly-reputed brand names involved in the deal include Amoxil, Augmentin, Imigran, Kapanol, Lamactil, Mesasal, Timentin, Valtrex, Zantac and Zofran.
The products included in the deal have earned GlaxoSmithKline considerable revenues, with 2011 year end revenues totalling 127.5 million Australian dollars ($132.7 million); although revenues in the six months to end June 2012 were lower at 47.4 million Australian dollars ($ 49.3 million) as one product came off patent prompting a surge in generic competition, and yearly price cuts were implemented by the Australian government.
While well-established branded products, the products involved in the transaction have not received particular prominence in GlaxoSmithKline’s marketing policy, and Aspen hopes to be able to whip up a following for the products over the coming period.
“Aspen is confident that it will be able to leverage its proven ability to reinvigorate older brands and the Products’ considerable brand equity in order to enhance the value of the portfolio,” the company said.
Furthermore, through this latest acquisition Aspen hopes to improve its market position in Australia, with the company stating that the new portfolio will strengthen its reputation as a market-leading pharmaceutical company.
Aspen Pharmacare is the largest publicly-traded drug manufacturer on the Johannesburg Stock Exchange (JSE), and is owned by South Africa billionaire, Stephen Saad who ranked 17th on Forbes’ Top 40 Richest Africans list with a net worth of $975 million.