GlaxoSmithKline announces acquisition of UCB portfolio

GlaxoSmithKline (GSK) has announced a 515 million euro (£483 million) cash acquisition of UCB’s marketed product portfolio.

As a result of the deal, GSK will obtain its partner’s products in areas including the Middle East, along with brands such as Keppra – a therapy for epilepsy sufferers.

Other trade names include Zyrtec and Xyzal, which are used for the treatment of allergic rhinitis.

Commenting on the acquisition, GSK’s president for emerging markets Abbas Hussain said the company was growing and diversifying its business by making new investments in less-developed economies.

He added the transaction would “strengthen and expand” the organisation’s product portfolio in such countries, allowing it to meet the needs of patients.

The commercial operations and product dispensing rights acquired by the organisation represent between three and four per cent of its partner’s expected 2008 revenue.

Last month, it was announced GSK and Dynavax had partnered to develop endosomal toll-like receptors, which are used for the treatment of immuno-inflammatory diseases.

As a result of the deal, Dynavax will receive an initial payment of $10 million (7.18 million pounds), followed by $200 million per programme if any development and commercialisation milestones are achieved.