Glaxo Sets Deal For Bristol's HIV Drugs
December 21 2015 - 3:02AM
Dow Jones News
(FROM THE WALL STREET JOURNAL 12/21/15)
By Denise Roland
LONDON -- GlaxoSmithKline PLC has agreed to pay Bristol-Myers
Squibb up to $1.5 billion to acquire the U.S. company's pipeline of
HIV drugs, a move which will bolster one of the U.K. drugmakers'
strongest-performing areas.
Glaxo said it would pay Bristol $317 million upfront for the
company's late-stage HIV drugs, plus $518 million depending on the
drugs hitting particular development and commercial milestones.
It will also pay Bristol $33 million upfront for its early-stage
HIV portfolio, plus $587 million in contingent milestone
payments.
The deal will strengthen the pipeline at ViiV Healthcare, an HIV
business largely owned by Glaxo. Pfizer Inc. and Japan's Shionogi
are minority partners. ViiV is the second-largest HIV business by
market share, after Gilead Sciences Inc.
ViiV has been a bright spot for Glaxo over the past year thanks
to strong sales of two new drugs. Revenue from the HIV business
increased 65% in the third quarter, offsetting falling sales
elsewhere in the company's large pharmaceuticals unit.
The U.S. company in June announced plans to end its virology
research efforts, which span HIV and hepatitis. Bristol said around
20 employees would be offered the opportunity to transfer to ViiV
following the transaction.
The deal doesn't include Bristol's marketed HIV drugs, which
include Reyataz, Evotaz, Sustiva and Atripla.
The companies said they expected the transactions to close in
the first half of 2016.
(END) Dow Jones Newswires
December 21, 2015 02:47 ET (07:47 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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