GlaxoSmithKline Buys Laboratorios Phoenix For $253M Cash

10th Jun 2010 16:11

LONDON (Dow Jones)--GlaxoSmithKline PLC (GSK.LN), said Thursday that it has acquired Laboratorios Phoenix S.A.C.yF, an Argentine pharmaceutical business, for a cash consideration of $253 million. "This is an important step forward in our strategy to grow our business in Latin America; a key group of emerging markets for GSK", said Abbas Hussain, President Emerging Markets. "By acquiring Phoenix, we will rapidly expand our presence in the fast growing Argentine market. In addition, Phoenix's broad portfolio and rich pipeline of branded generics will enable us to bring more medicines of value to patients in Argentina," Hussain said. MAIN FACTS: -Under the terms of the transaction, GSK will gain full ownership of Phoenix in a move to accelerate sales growth and further extend its pharmaceutical portfolio in Argentina and the Latin America region. -GSK will gain access to a broad portfolio of branded generic pharmaceutical products covering therapeutic areas including cardiovascular, gastroenterology, metabolic and urology, as well as a manufacturing facility near Buenos Aires and Phoenix's established primary care salesforce. -GSK will acquire an extensive local pipeline of branded generics and product development capability in Argentina. -GSK Argentina and Phoenix will stay as two separate legal entities and Phoenix will continue to be called Laboratorios Phoenix S.A.C.yF. Shares at 1505 GMT up 2.0 pence, or 0.17%, at 1164.50 pence. -By Razak Musah Baba, Dow Jones Newswires; +44-20-7842-9275; [email protected] -0- (END) Dow Jones Newswires June 10, 2010 11:11 ET (15:11 GMT)