Aspen makes deals with Merck and GSK

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Aspen makes deals with Merck and GSK

Home/Pharma News | Posted 09/08/2013 0 Post your comment

Generics manufacturer Aspen Pharmacare Holdings (Aspen) is expanding its brand-name business, first signing a deal with Pharma giant Merck, and then offering to buy two brand-name heart medications from GlaxoSmithKline (GSK).

Aspen announced on 17 July 2013 the signing of an agreement with Merck for the acquisition of Dutch active pharmaceutical ingredient (API) manufacturing business Dutch Newco. In addition, the two companies signed an option for Aspen to acquire a portfolio of 11 brand-name finished dose form molecules from Merck, covering a diverse range of therapeutic areas and including products that use APIs manufactured by Dutch Newco.

The purchase of Dutch Newco is expected to cost Aspen approximately US$1 billion and is expected to be completed on 1 October 2013. The products acquisition is expected to cost Aspen US$600 million and be finalized on 31 December 2013.

Aspen’s brand-name ambitions do not end there though. The company has also offered to buy brand-name heart medicines Arixtra (fondaparinux) and Fraxiparine (nadroparin) and a related manufacturing site in France from GSK for GBP 700 million. Sales for the two drugs are on the decline, generating sales of about GBP 420 million in 2012, down from GBP 510 million in 2011. The deal fits with GSK’s strategy of focussing on newer drugs and with Aspens expansion ambitions for overseas markets.

GSK owns a 19% stake in Aspen, which is Africa’s biggest generic drug company and claims to be the ninth largest generics company worldwide. Aspen also agreed to buy pharmaceutical and over-the-counter brands from GSK in two separate transactions during 2012.

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Source: Aspen