Headquarters of GlaxoSmithKline (GSK ) which is reportedly in talks with a $3 billion takeover deal of Stiefel
The acquisition deal could be announced as early as Monday, though there is still a possibility that it could fall apart, the report said.
If the deal sees the light of the day, it would mark the latest round of consolidation among drug makers. The pharmaceutical industry has been on the lookout to get hold of product lines, as competitors making generic products erode market shares.
The deal would enable GlaxoSmithKline (GSK) rejuvenate its product portfolio. Taking over Stiefel would enhance Glaxo’s dermatology offerings. The deal would also allow the Blackstone Group to cash out its minority stake in the privately held Stiefel that it bought in August 2007 for $500 million.
The present deal comes on the heels of the GSK's announcement that it has tied up with Pfizer (NYSE: PFE) to create a new specialist HIV company.
Formed by the merger of GlaxoWellcome and SmithKline Beecham in the year 2000, today GSK is a UK-based pharmaceutical and healthcare behemoth. The company is the world's second largest pharmaceutical company having a huge portfolio. Its Consumer Healthcare division has leading brands of oral healthcare products and nutritional drinks in its repertoire.
Stiefel Laboratories was established by John David Stiefel in Germany in the year 1847. Since then the company has worked with a remarkable and unwavering focus on the development of dermatology and skin care around the world. As on date, its prescriptions and over-the-counter skin care products are available in more than 100 countries. Stiefel’s products treat acne, dandruff and psoriasis.
The Coral Gables based company is being controlled by the founding Stiefel family since the last 160 years. In the last few years, Stiefel has made acquisitions as a growth strategy. It acquired Connetics for $605 million in 2006 and Barrier Therapeutics for close to $150 million in 2008.
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