GSK Extends Aspen Strategic Pact

GlaxoSmithKline has agreed to extend its strategic relationship with South African-based Aspen Pharmacare Holdings Ltd., and will acquire a 16% share in the company. This is part of a broader agreement that includes combining commercial activities in Sub-Saharan Africa and the divestment of several assets to Aspen.

Abbas Hussain, president emerging markets, 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. At the same time, GSK will also benefit from investing in one of Africa’s leading healthcare companies with a formidable track record of delivery.”

On completion, Aspen will issue 68.5 million new shares as non-cash consideration to GSK in exchange for the transfer of several assets. Aspen will appoint a non-executive director, nominated by GSK, to its board of directors upon closing of the transaction. GSK will divest its manufacturing facility in Bad Oldesloe, Germany to Aspen, and the following medicines: Alkeran (excluding US), Kemadrin, Lanvis, Leukeran, Myleran, Purinethol, Septrin and Trandate. The Bad Oldesloe manufacturing site produces some of these divested products and several other products Aspen previously acquired from GSK.

Under the terms of the agreement, GSK and Aspen will collaborate on the commercialization of their current and future product portfolios in Sub-Saharan Africa (excluding South Africa). The collaboration aims to build a broader and more diverse portfolio for these countries, with Aspen’s pipeline of new products expected to benefit from leveraging GSK’s existing commercial infrastructure. In South Africa, where Aspen has extensive commercial capability, GSK will transfer marketing and distribution rights to Aspen for its pharmaceutical products.

The agreement, subject to regulatory approvals, is expected to be complete before the end of this year.