India-based Sun Pharmaceutical Industries has agreed to acquire GlaxoSmithKline’s (GSK) opiates business in Australia.
The agreement has been signed by wholly-owned subsidiaries of both firms, with the financial terms not disclosed.
Go deeper with GlobalData
Sun Pharma API business executive vice-president Iftach Seri 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."
Under the agreement, Sun Pharma will acquire portfolio of opiates products along with inventory and will integrate in its subsidiary.
The product portfolio comprises poppy-derived opiate raw materials, which are used to produce analgesics for the treatment of moderate to severe pain.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe deal will also include acquisition of related manufacturing facilities, situated in Latrobe of Tasmania and Port Fairy of Victoria.
GSK opiates general manager Steve Morris 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."
The deal will help GSK to simplify its operations in Australia and focus on implementing the firm’s growth strategy through providing innovative product portfolio in the country.
Subject to customary closing conditions and requisite regulatory and other approvals, the deal is expected to be completed by August this year.
Image: GlaxoSmithKline headquarters in Brentford, London, England. Photo: courtesy of Maxwell Hamilton.
