GlaxoSmithKline Completes Acquisition of Reliant Pharmaceuticals
LONDON and PHILADELPHIA, December 19, 2007 /PRNewswire-FirstCall/ -- GlaxoSmithKline announced today that it had completed the acquisition of Reliant Pharmaceuticals. This follows the US Federal Trade Commission's early termination of the waiting period required by US antitrust law.
With the completion of the deal, Reliant's cardiovascular medicines join the GSK portfolio in the US. These include Lovaza(TM) (omega-3-acid ethyl esters), an FDA-approved treatment for adult patients with very high levels of triglycerides. Triglycerides are fatty substances in the blood associated with increased risks of coronary artery disease.
Lovaza (formerly known as Omacor(R)) is indicated as an adjunct to diet to reduce triglyceride levels in adults with very high (greater than or equal to 500 mg/dL) triglyceride levels. In the nine months ending September 30, 2007, net sales of Lovaza were $206 million, an increase of 115% over the first nine months of 2006.
GSK acquired Reliant, based in Liberty Corner, NJ, for $1.65 billion (800 million pounds Sterling) in cash. GSK expects the transaction will be slightly accretive to earnings in 2008, excluding integration costs, and will create additional value in following years.
"We're eager to begin building on Reliant's success with Lovaza," said Chris Viehbacher, President, US Pharmaceuticals, GSK. "We think this medicine has significant potential to help larger numbers of patients, and we expect it to become an important driver of sales growth in the US."
The acquisition gives GSK marketing rights to Lovaza in the US and Puerto Rico. Pronova BioPharma ASA , the compound's originator, has licensed rights in other markets to several other companies.
In addition to Lovaza, three other cardiovascular products marketed by Reliant will join the GSK portfolio in the US. They are DynaCirc CR(R) (isradipine) and InnoPran XL(R) (propanolol HCl), which treat high blood pressure, and Rythmol SR(R) (propafenone), which treats abnormal heart rhythms, or arrhythmia.
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For company information, visit www.gsk.com.
GlaxoSmithKline forward-looking statements
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect GSK's operations are described under 'Risk Factors' in the Operating and Financial Review and Prospects in the company's Annual Report on Form 20-F for 2006.
CONTACT: GlaxoSmithKline inquiries: US media inquiries, Rick Sluder,+1-919-483-2839, or UK media inquiries, Philip Thomson, +020-8047-5502, orAlice Hunt, +020-8047-5502, or Joss Mathieson, +020-8047-5502, or ClaireBrough, +020-8047-5502, or US analyst - investor inquiries, Frank Murdolo,+1-215-751-7002, or Tom Curry, +1-215-751-5419, or European analyst -investor inquiries, David Mawdsley, +020-8047-5564, or Sally Ferguson,+020-8047-5543
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Posted: December 2007