GlaxoSmithKline (GSK) and Sun Pharmaceutical Industries today announced that their respective wholly owned subsidiaries have reached an agreement related to GSK's Opiates business in Australia.
The current GSK Opiates business including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory, will transfer to a subsidiary of Sun Pharma.
The 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.
All employees from both sites will also be offered employment by Sun with the Opiates business.
Both Sun Pharma and GSK believe that the future of the Opiates business will be secured as part of Sun Pharma, a company with a global footprint.
The transaction will allow GSK to simplify its operations in Australia and allow it to focus on delivering its innovative product portfolio that will be central to the company's growth strategy in this country.
Steve Morris, general manager, GSK Opiates said, ''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.''
''Sun Pharma has an established footprint in this market and, with the addition of our highly skilled employees; I believe they are well-placed to take the business forward.''
Iftach Seri, executive vice president of API business at Sun Pharma said, ''The global Opiates market holds good potential and the addition of GSK’s Opiates business will strengthen our positioning further. The acquisition is a part of our strategy towards building our portfolio of opiates and accessing strong capabilities in this segment.''
The financial terms of the transaction are confidential. The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015.
Shares of the company gained Rs 16.15, or 1.75%, to trade at Rs 940. The total volume of shares traded was 32,087 at the BSE (9.42 a.m., Tuesday).
