April 20, 2009

GlaxoSmithKline to purchase Stiefel

British pharmaceutical giant GlaxoSmithKline said Monday it agreed to purchase skin-products producer Stiefel Laboratories for $2.9 billion.

The deal includes the assumption of $400 million of Stiefel's debt, but will add a robust development pipeline to GlaxoSmithKline's product line, the company said in a statement.

The deal also includes a potential $300 million cash payment depending on future performance.

The addition of Stiefel's broad portfolio will provide immediate new revenue flows to GSK with significant opportunities to enhance growth through leveraging our existing global commercial infrastructure and manufacturing capability, GSK Chief Executive Officer Andrew Witty said in a statement.

Chairman Charles Stiefel will continue in his current role until the deal closes and he will lead the new business thereafter, the statement said.