LONDON (Alliance News) - GlaxoSmithKline PLC Monday said it has reached a deal to sell its thrombosis brands Arixtra and Fraxiparine and the Notre-Dame de Bondeville manufacturing site to The Aspen Group for GBP700 million in cash, part of a move to focus on a narrower range of products that it considers to have better growth prospects.
The drugs giant said it expects to get net cash proceeds of GBP600 million, which it will use for general corporate purposes. The net profit on the sale will be excluded from its 2013 results.
South Africa-based Aspen, in which Glaxo has a 18.6% stake, gets global rights to the Arixtra and Fraxiparine, excluding China, India and Pakistan, certain dedicated commercial employees, along with the related Notre-Dame de Bondeville manufacturing site and the majority of employees at Notre-Dame de Bondeville in France.
Glaxo will continue to distribute and market the drugs in Indonesia under license from Aspen.
It expects most of the commercial operations will be transferred by the end of the year with the Notre-Dame de Bondeville site transferred in the first half of next year.
Sales of these drugs in the countries covered by the deal were GBP177 million in the first half of this year.
"Arixtra and Fraxiparine are established products that have consistently delivered strong revenues. However, our focus is on delivering an unprecedented late-stage pipeline and preparing for the launch of approved medicines," Glaxo Chief Strategy Officer David Redfern said in a statement.
Glaxo shares were down 0.2% at 1,564.68 pence midday Monday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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