HYDERABAD: The country’s largest drugmaker by market value, Sun Pharma Ltd, on Tuesday said it will acquire GlaxoSmithKline’s (GSK) Opiates business in Australia for an undisclosed sum.
For Dilip Shanghvi-led Sun, which already has 17 acquisitions under its belt including the high-profile Ranbaxy Laboratories, the acquisition will strengthen its portfolio of opiates in Australia.
For GSK, the deal will allow it to simplify its operations in Australia and focus on its product portfolio central to its growth strategy in Australia.
GSK’s Opiates business product portfolio consists of poppy-derived opiate raw materials that are primarily used in the manufacture of analgesics for the treatment of moderate to severe pain.
“The acquisition is a part of our strategy towards building our portfolio of opiates and accessing strong capabilities in this segment,” said Iftach Seri, Executive Vice President, API business, Sun Pharma.
He added that the global opiates market holds good potential and the addition of GSK’s Opiates business will strengthen the company’s positioning further. As per the agreement, GSK will transfer manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory, to a subsidiary of Sun Pharma.
The transaction is expected to close by August, 2015 subject to customary closing conditions and requisite regulatory approvals. Employees from both sites will also be offered employment by Sun with the Opiates business.
“The Opiates business has been an important part of our Australian business for many years, but as our portfolio transitions, we believe now is the right time to hand this business over to someone else,” said Steve Morris, General Manager, GSK Opiates.