Drug major Sun Pharma will acquire GlaxoSmithKline's Opiates business in Australia for an undisclosed amount...
Drug major Sun Pharma will acquire GlaxoSmithKline’s Opiates business in Australia for an undisclosed amount.
“The acquisition is a part of our strategy towards building our portfolio of opiates and accessing strong capabilities in this segment,” said Iftach Seri, Executive Vice President of API business, Sun Pharma.
“GlaxoSmithKline (GSK) and Sun Pharmaceutical Industries today announced that their respective wholly owned subsidiaries have reached an agreement related to GSK’s Opiates business in Australia,” the companies said in a joint statement.
The GSK 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.
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, the statement said.
All employees from both sites will also be offered employment by Sun with the Opiates business, it added.
The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015, it added.
Seri said the global Opiates market holds good potential and the addition of GSK Opiates business will strengthen the company positioning further.
“The Opiates business has been an important part of our Australian business for many years, but as our portfolio transitions, we believe now is the right time to hand this business over to someone else,” GSK Opiates General Manager Steve Morris said.
“Sun Pharma has an established footprint in this market and with the addition of our highly skilled employees, I believe they are well-placed to take the business forward,” he added.
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 growth strategy in this country, the statement said.
Sun Pharma shares were trading at Rs 938.45 apiece on the BSE, up 1.58 per cent from the previous close.