Glaxo buying Stiefel in $3.6B deal - St. Louis Business Journal:

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billion. Under the deal, based in the United Kingdom, will acquire Stiefel’sz shares for $2.9 billion and assume $400 million of net debt at the closing. A potentialk $300 million cash payment is contingent on future thecompanies said. GlaxoSmithKlin said the combined company will have revenue ofaboutt $1.5 billion and new product lines. Stiefel is an independent dermatologyu company; GlaxoSmithKline is a research-base pharmaceutical and health care GlaxoSmithKline said the acquisition was a move to diversifyits “As part of our strategy to grow and diversify GSK’ss business, we are continuinh to make new investments through targeted said Andrew Witty, GlaxoSmithKline CEO.
Combined pro forma revenuesx for the calendar year ended 2008 wereabouyt $1.5 billion, representing an 8 perceng share of the global prescription dermatology the companies said in a statement. Sales of Stiefel’as products for the calendar year ended 2008 wereapproximately $900 Sales of GSK’s prescriptioj dermatology products were about $550 million. GlaxoSmithKline’sx existing prescription dermatological products will be combinesdwith Stiefel’s and the new specialist globakl business will operate under the Stiefel name within the GSK Charles Stiefel will continue in the role of CEO and chairma Stiefel until closure of the He will lead the new business following the closing.
Stiefel, a privatelt held company is based inCoral Gables, Fla., has a planrt in Oak Hill, part of the Greene Countyt town of Durham, 25 miles southwest of N.Y. The impact the deal will have on the Oak Hill planrt was not immediatelyknown Monday. "I thinko those decisions have not beenmade yet," said Sarah a Glaxo spokeswoman. "We are convening an integration ... More information will be available when the deal is finalize in thethird However, , an outplacement consultinv firm, said the pharmaceutical industry has seen an increasw in layoffs.
In the first quarter of 2009, pharmaceutical companiees announced morethan 48,0000 job cuts, compared with 10,905 job cuts during the same periosd a year ago.