Apollo Global Management is planning to bid on GSK's entire portfolio of drugs

  • GSK,GlaxoSmithKline,Apollo

GlaxoSmithKline ($GSK) has long explored a sale of some $3 billion worth of its older drugs, planning to shed products by geographic region to meet buyers' interests. Now, the company could have a more enticing offer on its hands as private equity firm Apollo Global Management is planning to bid on GSK's entire portfolio of drugs, people familiar with the process toldReuters.

Last month, sources told Reuters that GSK would begin to take bids for aging products in November and that the company would hive off drugs by geographical region, reflecting the needs of buyers. Potential suitors such Denmark's Lundbeck and India's Lupin are both looking to expand in the U.S. and are also preparing for patent losses some of their top-selling products. GSK brands up for sale include the antidepressant Paxil, migraine treatment Imitrex, stomach acid-reducer Zantac and nausea fighter Zofran--drugs expected to have combined 2014 sales of around ?1 billion ($1.6 billion) but face competition from cheap generics.

As part of the deal, GSK would hold onto rights for the drugs in emerging markets, where demand for the products is still growing.

This is not the first time private equity has weighed a buyout of Big Pharma's aging meds. In August, KKR, Warburg Pincus, Blackstone Capital, Bain Capital and Apollo were also said to be eyeing GSK's and Novartis' older drugs, planning to merge the two company's portfolios into one bigger set.

Meanwhile, GSK is waiting to complete its three-part deal to sell and combine assets with Novartis ($NVS). In April, the company engineered a $20 million asset swap with the Swiss drugmaker, handing its oncology business to Novartis, snatching up the latter's vaccines unit and setting up a consumer health joint venture to market over-the-counter products with an estimated $11 billion in sales. Novartis and GSK expect to close the multipart deal sometime early next year, the companies said when the asset swap was announced.

GSK is not the only drugmaker looking to unload aging products. Abbott Laboratories ($ABT) recently sold off many of its older drugs to Mylan ($MYL) in a $5.3 billion deal, and in September AstraZeneca ($AZN) passed off 18 aging meds to specialty generics maker IGI Laboratories for $500,000 up front, plus $6 million in milestones and up to $3 million in royalties. Merck ($MRK) and Sanofi ($SNY) are also shopping around portfolios, but Sanofi's plans have stalled as top company managers could not agree on how to move forward with the sale.

This link:http://www.chemcd.com/news/7722.html

The ChemCD compiler finishing, shall not be reproduced without permission, for reprint please indicate the source。

comments powered by Disqus


Related News

GSK receives FDA approval for Arnuity™ Ellipta® (fluticasone furoate) in the USA for the treatment of asthma

2014/08/23 - GlaxoSmithKline plc today announced that the Food and Drug Administration has approved Arnuity? Ellipta?, a once-daily inhaled corticosteroid medicine for maintenance treatment of asthma as prophylactic therapy in patients aged 12 years and older.

GSK and Genmab announce positive interim result for phase III study of ofatumumab as maintenance therapy for relapsed CLL

2014/08/03 - GlaxoSmithKline plc and Genmab A/S announced today that an Independent Data Monitoring Committee (IDMC) interim analysis of a phase III study, PROLONG (OMB 112517), reached the predefined significance level for efficacy (p≤0.001).

Pharma Stocks To Watch This Week

2014/09/09 - This week’s highlights include two major medical conferences, the ERS International Congress 2014 and MSBoston2014. Many large names in the pharmaceutical and biotech sector, such as GlaxoSmithKline plc(GSK), Biogen Idec Inc (BIIB), and Abbvie Inc. (ABBV) will present on the experimental drugs in their pipelines and their current development.

FDA approves Flonase allergy relief for sale over-the-counter in the United States

2014/07/26 - GlaxoSmithKline plc today announced that the U.S. Food and Drug Administration (FDA) has approved Flonase? Allergy Relief containing the No. 1

GSK's Tanzeum is now available in pharmacies in the U.S.

2014/08/05 - GSK (LSE/NYSE: GSK) today announced that once-weekly Tanzeum (albiglutide), a prescription injectable treatment for type 2 diabetes in adults, as an adjunct to diet and exercise, is now available in pharmacies throughout the U.S.

GSK receives FDA approval of an additional Promacta (eltrombopag) indication for use in patients with severe aplastic anaemia (SAA) who have had an insufficient response to immunosuppressive therapy (IST)

2014/08/28 - FDA has approved a supplemental New Drug Application (sNDA) for the once-daily use of Promacta(eltrombopag) in patients with severe aplastic anaemia (SAA) who have had an insufficient response to immunosuppressive therapy (IST).