GlaxoSmithKline to sell brand rights in Australia

Associated Press SHARE

By The Associated Press, Associated Press

British drugmaker GlaxoSmithKline PLC will sell the rights to several of its products in Australia to Aspen Pharmacare Holdings Ltd. for nearly $270 million (172 million pounds).

The company said Wednesday that the deal involves 25 products it no longer promotes, including genital herpes treatment Valtrex and the antibiotics Timentin and Amoxil.

The brands made about $130.2 million in revenue in Australia last year and $48.6 million in the first half of this year. Glaxo said revenue from the products has slipped in recent years due to government price cuts in Australia and generic competition.

Glaxo expects the deal to be completed in this year's fourth quarter. It said net profit will be about $189.8 million after taxes and transaction costs, among other deductions.

Aspen, based in South Africa, supplies branded and generic pharmaceuticals in about 100 countries.

Glaxo shares rose 2 cents to $46.69 in New York trading.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.