GSK makes acquisition in Egypt

Source: Healthcare Digital

Date :16/10/2008 09:05:42

GlaxoSmithKline plc will acquire the Egyptian mature products business of Bristol Myers Squibb (BMS) for US$210 (£125) million, in a move to further extend its pharmaceutical portfolio in emerging markets.

The acquisition will give the London-based pharmaceutical company the largest market position in Egypt, at about nine percent. It is one of the first deals co-ordinated by Abbas Hussain (pictured) who was hired by GSK Chief Executive Andrew Witty as President of Emerging Markets.

The deal includes taking control of 20 branded products that generated US$48.5 million in sales last year, as well as BMS’s manufacturing plant in Giza near Cairo. GSK plans to use the plant to expand the sale of the generic medicines it produces in the Middle East and North Africa region.

Commenting on the deal, Hussain said: “This acquisition is an important step forward in GSK’s strategy to accelerate sales growth in emerging markets. It will enable us to build and diversify our existing branded pharmaceuticals portfolio and signals our strong commitment to provide quality medicines to patients in Egypt and other countries in the Middle East and North Africa region.”

Completion of the acquisition is expected by the end of October 2008.