GSK and Aspen enter product divestment agreement

This press release is intended for business journalists and analysts/investors. Please note that this release may not have been issued in every market in which GSK operates.
GlaxoSmithKline (GSK) today announced that it has agreed to sell four products, Eltroxin, Lanoxin, Imuran and Zyloric to a subsidiary of the South African based pharmaceuticals group, Aspen Global Incorporated for a cash consideration of £170 million. Aspen will own these products in all major markets outside of the USA, except for rights to Zyloric in Japan. The products, which largely no longer hold patent protection, last year recorded sales of around £80 million in the markets concerned and require specialised manufacturing.

Andrew Witty, Chief Executive Officer, GSK said: “As we look to maximise the value of our portfolio and simplify our manufacturing operations we are actively seeking out opportunities to divest products which can be efficiently commercialised by other parties. Aspen is a well respected and fast growing pharmaceuticals group with an extensive branded generic portfolio and pipeline. Ensuring continuity of supply for patients was an important consideration in our choice of partner for this agreement, alongside Aspen’s commitment to product quality and high standards of manufacturing.”

Eltroxin is a thyroid hormone for hyperthyroidism, Lanoxin is a cardiac glycoside for heart failure, Imuran is an immunosuppressant and Zyloric is an enzyme inhibitor for the treatment of gout. GSK will continue to manufacture the products for Aspen during a transitional period after which Aspen will take full responsibility for manufacturing.

GSK will record the gain on this transaction in the quarter ended 30 June 2008 and the company’s earnings per share guidance for the year remains unchanged.