GSK Completes Acquisition of Stiefel

GlaxoSmithKline (GSK) announced that it has completed its acquisition of Stiefel Laboratories, Inc to create a new world-leading specialist dermatology business. GSK has acquired the total share capital of Stiefel for a cash consideration of $2.9 billion. The new dermatology business unit within GSK will operate under the name ‘Stiefel, A GSK Company’.

“The Stiefel acquisition demonstrates how we are implementing our strategy to grow and diversify our business through targeted acquisitions,” said Deirdre Connelly, President, North American Pharmaceuticals, GSK said. “We now have established a new world-leading, specialist dermatology business that will immediately generate new growth opportunities for GSK and allow us to address the dermatological needs of more patients.”

Charles Stiefel, Chairman of Stiefel, said, “As part of GSK, we are stronger, more competitive and continue to be a driving force in dermatology around the world. We are excited to combine GSK’s prescription dermatology products, with Stiefel’s portfolio, which include brands such as PanOxyl, Oilatum, Duofilm and Driclor. This combined portfolio, together with our specialty sales force and GSK’s global presence, positions GSK’s dermatology business for significant growth.”

Sales of Stiefel’s products for 2008 were approximately $900 million and sales of GSK’s prescription dermatology products were approximately $550 million. The combined pro forma revenues of approximately $1.5 billion, represent an 8% share of the global prescription dermatology market.

Stiefel is committed to improving and developing new treatments and has a robust development pipeline, with more than 15 projects in late-stage development across a wide variety of dermatological conditions, such as acne, dermatoses and fungal infection. The business unit also has access to significant innovative and proprietary formulation technologies. By combining expertise, knowledge and imagination, Stiefel delivers exceptional ethical, over-the-counter and aesthetic products to its customers in more than 100 countries around the world, ultimately providing a unique Stiefel skin health experience.

As one of the world’s leading research-based pharmaceutical and healthcare companies, GSK is committed to improving the quality of human life by enabling people to do more, feel better and live longer.