GSK has completed its acquisition of Stiefel, creating a new world-leading specialist dermatology business with revenues of approximately $1.5 billion.
GSK has acquired the company for a total price of $2.9 billion, as well as assuming $0.4 billion of net debt. The new unit will operate as Stiefel, a GSK company.
Under the terms of the agreement, GSK may be obligated to make additional cash payments of up to $0.3 billion depending on the future performance of the business.
Deirdre Connelly, President, North American Pharmaceuticals, GSK, said: “The Stiefel acquisition demonstrates how we are implementing our strategy to grow and diversify our business through targeted acquisitions. We now have established a new world-leading, specialist dermatology business that will immediately generate new revenue flows to GSK.”
Charles Stiefel, Chairman of Stiefel, added: “As part of GSK, we are stronger, more competitive and continue to be a driving force in dermatology around the world. Our combined portfolios, together with our specialty sales force and GSK’s global presence, positions GSK’s dermatology business for significant growth.”
The combined revenues of the two companies in 2008 total approximately $1.5 billion, and represent an 8% share of the global prescription dermatology market.
In acquiring Stiefel, GSK has gained a robust development pipeline with more than 15 projects in late-stage development across a wide variety of dermatological conditions, such as acne, dermatoses and fungal infections.