Glaxo acquires Reliant Pharmaceuticals

Source: Healthcare Digital

Date :21/11/2007 11:13:44

GlaxoSmithKline Plc announces the acquisition of Reliant Pharmaceuticals for $1.65 billion in cash.

The sale marks a change of tack for Reliant, a privately held specialty pharmaceutical company, which had been considering an initial public offering.

Glaxo said the deal would be slightly accretive to earnings in 2008, excluding integration costs, and will create additional value in following years. It is expected to close by year-end.

Lovaza

Through its strategic in-licensing and development strategy, Reliant has developed a portfolio of specialty medicines combating heart disease, including US rights to Lovaza™ (omega-3-acid ethyl esters), a treatment for adult patients with very high levels of triglycerides.

Launched in late 2005, Lovaza (formerly known as Omacor®), in the nine months ending 30 September 2007, net sales were $206 million, an increase of 115% over the first nine months of 2006.

It is the only prescription omega-3 medicine approved by the US Food and Drug Administration for the treatment of very high triglyceride and competes in the non-statin dyslipidemia segment of the US cardiovascular market, where owns a ten percent market share.

Growing profile

“The addition of Lovaza to the GSK portfolio adds a new driver of sales growth in the US business. It represents a strong strategic fit…..and adds to our growing profile in the cardiovascular disease area,” Chris Viehbacher(pictured), President, US Pharmaceuticals, GSK, said.

We see great additional potential through this acquisition for Lovaza and the patients who could benefit from it,” said Bradley T. Sheares, CEO of Reliant.

The acquisition is subject to approval by the US Federal Trade Commission and is expected to conclude before the end of 2007.

November 21, 2007