GSK Buys Into Argentina

GlaxoSmithKline (GSK) has acquired Argentina’s Laboratorios Phoenix for $253m in cash. The deal makes GSK the third largest pharmaceutical company in Argentina, the company says. A GSK spokeswoman says the company is looking to expand in EM, with LatAm being a priority. Phoenix, with 2009 sales of about $102m, is ranked eighth largest in Argentina’s pharmaceutical market, according to US-based healthcare intelligence company IMS. GSK Argentina made $82m in 2009 sales, making it the 14th biggest in Argentina’s pharmaceutical market. With this acquisition, GSK says it will gain a portfolio of branded generic pharmaceutical products covering therapeutic areas including cardiovascular, gastroenterology, metabolic and urology, as well as a manufacturing facility near Buenos Aires and Phoenix’s established primary care sales team. In addition, it will get an extensive pipeline of branded generics and product development capability in Argentina. Following the acquisition, GSK Argentina and Phoenix will stay as separate legal entities and Phoenix will retain its name, the buyer says. The GSK spokeswoman says that outside financial advisors were involved in the deal, but declines to name them. According to IMS data, GSK is the world’s fifth largest pharmaceutical company in the world, with 2009 sales of $35bn. The acquisition should not put a big dent in GSK’s balance sheet as it had about $9.6bn in cash at hand in 2009, up from $8.2bn the previous year, according to its own financial reports.