GlaxoSmithKline acquires Stiefel Laboratories

GlaxoSmithKline has completed the acquisition of Stiefel Laboratories, it has announced.

The transaction involved a cash consideration of $2.9 billion (1.7 billion pounds). In addition, GlaxoSmithKline assumed $0.4 billion in net debt.

Under the terms of the deal, GlaxoSmithKline may be required to make extra cash payments of up to $0.3 billion, depending on the business’ future performance.

Commenting on the acquisition, Deirdre Connelly, president of North American Pharmaceuticals at GlaxoSmithKline, said: “We now have established a new world-leading, specialist dermatology business that will immediately generate new revenue flows.”

The firm revealed that the new business unit will operate under the name Stiefel, a GSK company.

Charles Stiefel, chairman of Stiefel, added: “As part of GlaxoSmithKline, we are stronger, more competitive and continue to be a driving force in dermatology around the world.”

In recent days, GlaxoSmithKline and Human Genome Sciences announced positive phase III trial data for Benlysta (belimumab, formerly LymphoStat-B) in patients with serologically-active systemic lupus erythematosus.