GSK to Acquire Reliant Pharmaceuticals
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GlaxoSmithKline and Reliant Pharmaceuticals Inc. have announced that they had reached an agreement under which Reliant will be acquired by GSK for $1.65 billion (800 million pounds Sterling) in cash.
Reliant, a privately held specialty pharmaceutical company focused on cardiovascular therapies, recorded net sales of $341 million in the nine months ending September 30, 2007, an increase of 62% over the comparable time period a year earlier.
GSK expects the transaction will be slightly accretive to earnings in 2008, excluding integration costs, and will create additional value in following years.
Through its strategic in-licensing and development strategy, Reliant has developed a portfolio of specialty medicines combating heart disease, including US rights to Lovaza™ (omega-3-acid ethyl esters), a treatment for adult patients with very high levels of triglycerides.
Launched in late 2005, Lovaza (formerly known as Omacor®) achieved rapid uptake among patients and health care professionals. In the nine months ending September 30, 2007, net sales were $206 million, an increase of 115% over the first nine months of 2006.
Commenting on the acquisition agreement, Chris Viehbacher, President, US Pharmaceuticals, GSK, said, "The addition of Lovaza to the GSK portfolio adds a new driver of sales growth in the US business. It represents a strong strategic fit, complementing Coreg CR®, a leading treatment for heart failure and hypertension, and adds to our growing profile in the cardiovascular disease area."
"Today is a momentous date for Reliant," said Bradley T. Sheares, CEO of Reliant. "We are very proud of the work that our employees have done to build this company, particularly the energy and perseverance of our sales teams, who have demonstrated their worth in building a formidable Lovaza franchise in less than 24 months. We see great additional potential through this acquisition for Lovaza and the patients who could benefit from it."
The acquisition is subject to approval by the US Federal Trade Commission and is expected to conclude before year-end.
