AstraZeneca to divest portfolio to GSK

AstraZeneca has said it is to divest its portfolio of over-the-counter products – which are predominantly sold in Sweden – to GlaxoSmithKline (GSK).

The deal will see the company receive $253 million (167 million pounds) for the brands, which include decongestion treatments Nezeril/Nasin, analgesics Reliv and Alvedon, Duroferon for iron deficiency and Miniform – a gastrointestinal disorder remedy.

In order for the transaction to go ahead, it needs to receive the Swedish Competition Authority’s approval, which is not expected to be received until the first quarter of 2009.

In other news, AstraZeneca has entered into a deal with Abraxis BioScience.

Under the terms of the transaction, Abraxis would re-acquire exclusive rights to market Abraxine in the United States.

Furthermore, the company says it will continue to promote the product until it receives timely confirmation that the board of directors of Abraxis’ parent has approved ending the co-promotion agreement.

AstraZeneca employs 67,000 people globally, of which 55 per cent are in Europe, 30 per cent in the Americas and 15 per cent work in Asia, Africa and Australasia.

The company’s sales reached $29.6 billion in 2007, with an operating profit of $9 billion and research and development spend of more than $5 billion.