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Glaxo buys UCB emerging market activities

Glaxo buys UCB emerging market activities
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First Published: Fri, Jan 23 2009. 02 28 PM IST
Updated: Fri, Jan 23 2009. 02 28 PM IST
Brussels: GlaxoSmithKline Plc has agreed to buy Belgian pharmaceutical group UCB’s operations and commercial rights in a number of emerging markets for euro515 million ($667.2 million).
The two companies announced the cash deal on Friday for more than 50 operations in Africa, the Middle East, Asia Pacific and Latin America, but excluding Brazil, Russia, India, China, South Korea and Mexico and UCB’s new core products.
Completion of the deal is due in late March.
New Glaxo Chief Executive Andrew Witty has made emerging markets a priority, a pledge backed up in July by a deal with South Africa’s Aspen Pharmacare Holdings and in December by its acquisition of Bristol-Myers Squibb Co’s Pakistan operations.
UCB described the activities as smaller markets for it, representing 3 to 4% of revenue, and said their sale would allow it to focus on key strategic areas.
UCB said the sale fitted in with its “SHAPE” programme launched last year that will relocate resources to boost UCB’s specialist areas of the central nervous system and immunology.
The Belgian company repeated its forecast of a recurring EBITDA (earnings before interest, tax, depreciation and amortisation) this year of at least euro650 million.
The deal will mean Glaxo acquires rights to UCB brands such as epilepsy drug Keppra and allergy medicines Xyzal and Zyrtec.
However, it will not cover UCB’s newer products Cimzia, for Crohn’s disease and rheumatoid arthritis, Parkinson’s and restless leg syndrome drug Neupro and Vimpat for epilepsy.
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First Published: Fri, Jan 23 2009. 02 28 PM IST
More Topics: UCB | Glaxo | Sale | Corporate | Pharmaceutical |