21st Nov 2007 14:22
GlaxoSmithKline PLC21 November 2007 GSK to Acquire Reliant Pharmaceuticals Addition of Lovaza to expand GSK cardiovascular portfolio in US Acquisition provides sales, synergy benefits London, UK, Philadelphia, PA, and Liberty Corner, NJ (November 21, 2007) -GlaxoSmithKline (LSE & NYSE: GSK) and Reliant Pharmaceuticals Inc. announcedtoday that they had reached an agreement under which Reliant will be acquired byGSK for $1.65 billion (£800 million) in cash. Reliant, a privately held specialty pharmaceutical company focused oncardiovascular therapies, recorded net sales of $341 million in the nine monthsending September 30, 2007, an increase of 62% over the comparable time period ayear earlier. GSK expects the transaction will be slightly accretive to earnings in 2008,excluding integration costs, and will create additional value in followingyears. Through its strategic in-licensing and development strategy, Reliant hasdeveloped a portfolio of specialty medicines combating heart disease, includingUS rights to LovazaTM (omega-3-acid ethyl esters), a treatment for adultpatients with very high levels of triglycerides. Triglycerides are fattysubstances in the blood associated with increased risks of coronary arterydisease. Lovaza is indicated as an adjunct to diet to reduce triglyceridelevels in adults with very high ((3)500 mg/dL) triglyceride levels. High lipid levels continue to be a growing health problem in the United States,with up to 5 million people having triglyceride levels classified as very high.Lovaza is the only prescription omega-3 medicine approved by the US Food andDrug Administration for the treatment of very high triglycerides, and remainsthe only omega-3 medicine that, along with diet and exercise, has beenclinically proven to provide a 45% reduction in triglycerides in adult patientswith very high triglyceride levels. Launched in late 2005, Lovaza (formerly known as Omacor(R)) achieved rapiduptake among patients and health care professionals. In the nine months endingSeptember 30, 2007, net sales were $206 million, an increase of 115% over thefirst nine months of 2006. Lovaza competes in the non-statin dyslipidemia segment of the US cardiovascularmarket, where it had achieved a 10% market share of total prescriptions as ofSeptember 30, 2007. Sales in the non-statin dyslipidemia market totaledapproximately $2.2 billion in 2006 and are expected to grow in excess of 20% ayear. GSK believes there is significant opportunity for future growth of Lovazain this market segment. Reliant licensed the rights to Lovaza in the US and Puerto Rico from PronovaBioPharma ASA (Oslo: PRON), a publicly traded Norwegian company that willcontinue to supply the product's primary material. Rights to Lovaza in othermarkets have been licensed by Pronova to several other companies. Commenting on the acquisition agreement, Chris Viehbacher, President, USPharmaceuticals, GSK, said, "The addition of Lovaza to the GSK portfolio adds anew driver of sales growth in the US business. It represents a strong strategicfit, complementing Coreg CR(R), a leading treatment for heart failure andhypertension, and adds to our growing profile in the cardiovascular diseasearea." "Today is a momentous date for Reliant," said Bradley T. Sheares, CEO ofReliant. "We are very proud of the work that our employees have done to buildthis company, particularly the energy and perseverance of our sales teams, whohave demonstrated their worth in building a formidable Lovaza franchise in lessthan 24 months. We see great additional potential through this acquisition forLovaza and the patients who could benefit from it." The acquisition is subject to approval by the US Federal Trade Commission and isexpected to conclude before year-end. In addition to Lovaza, Reliant Pharmaceuticals, based in Liberty Corner, NJ,currently markets three other in-licensed cardiovascular products - high bloodpressure treatments DynaCirc CR(R) (isradipine) and InnoPran XL(R) (propanololHCl), as well as Rythmol SR(R) (propafenone), which treats abnormal heartrhythms, or arrhythmia. S M Bicknell Company Secretary 21st November 2007 About GSK GlaxoSmithKline - one of the world's leading research-based pharmaceutical andhealthcare companies - is committed to improving the quality of human life byenabling people to do more, feel better and live longer. For companyinformation, visit www.gsk.com. GlaxoSmithKline forward-looking statements Under the safe harbor provisions of the U.S. Private Securities LitigationReform Act of 1995, GSK cautions investors that any forward-looking statementsor projections made by GSK, including those made in this announcement, aresubject to risks and uncertainties that may cause actual results to differmaterially from those projected. Factors that may affect GSK's operations aredescribed under 'Risk Factors' in the Operating and Financial Review andProspects in the company's Annual Report on Form 20-F for 2006. About Reliant Pharmaceuticals Reliant Pharmaceuticals, Inc. is a pharmaceutical company that specializes inthe development, commercialization and marketing of prescription therapeuticproducts. Reliant currently markets four cardiovascular products in the UnitedStates and focuses on promoting its products to targeted primary care andspecialty physicians, as well as selected hospitals and academic centers in theUnited States. Reliant's sales force infrastructure is comprised ofapproximately 880 sales and marketing professionals nationwide. Reliant Pharmaceuticals forward-looking statements To the extent any statements made in this release contain information that isnot historical, these statements are essentially forward looking and are subjectto risks and uncertainties, and other factors that may cause Reliant's actualresults, levels of activity, performance or achievements to be materiallydifferent from any future results, levels of activity, performance orachievements expressed or implied by these forward-looking statements. Youshould not place undue reliance on forward-looking statements since they involveknown and unknown risks, uncertainties and other factors which are, in somecases, beyond Reliant's control and which could materially affect actualresults, levels of activity, performance or achievements. GlaxoSmithKline inquiries: US media inquiries: Rick Sluder (919) 483 2839 UK media inquiries: Philip Thomson (020) 8047 5502 Alice Hunt (020) 8047 5502 Joss Mathieson (020) 8047 5502 Claire Brough (020) 8047 5502 US analyst/investor inquiries: Frank Murdolo (215) 751 7002 Tom Curry (215) 751 5419 European analyst/investor inquiries: David Mawdsley (020) 8047 5564 Sally Ferguson (020) 8047 5543 Reliant inquiries: Marylou Rowe (908) 542 4646 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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