Drug major Sun Pharma will acquire GlaxoSmithKline's Opiates business in Australia for an undisclosed amount to strengthen its pain management portfolio. Both companies said they expect to close the deal by August.
GSK's Opiates business product portfolio consists of poppy-derived opiate raw materials that are primarily used in the manufacture of analgesics for the treatment of moderate to severe pain.
Here is all you need to know about the deal:
1.The business consists of analgesics made from raw materials found in opium poppy plants, and includes two manufacturing sites in the states of Tasmania and Victoria.
2. Glaxo supplies a quarter of the world's medicinal opiate needs from poppies grown by farmers in Tasmania, according to the company website. The company's Australian opiates business brought in revenue of A$89 million ($69.63 million) in 2013.
Agencies
3. Australia's poppy industry is the world's largest legal supplier of pharmaceutical grade opiates for painkillers, and Glaxo is one of three firms that control the crop and production in Tasmania. The other two are Johnson & Johnson's unit Tasmanian Alkaloids, and privately-held TPI Enterprises.
4. The acquisition is a part of Sun's strategy towards building its portfolio of opiates and accessing strong capabilities in this segment
5. As per the agreement, GSK will transfer manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory, to a subsidiary of Sun Pharma
6. All employees from both sites will also be offered employment by Sun with the Opiates business, it added.
7. The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015
8. The global Opiates market holds good potential and the addition of GSK's Opiates business will strengthen the company's positioning further.
9. The deal will allow GSK to simplify its operations in Australia and allow it to focus on delivering its innovative product portfolio that will be central to the company's growth strategy in this country, the company statement said.
10. Sun Pharma shares were trading at Rs 938.45 apiece on the BSE, up 1.58 percent from the previous close
With inputs from Agencies
No comments:
Post a Comment