GSK sells rabies and tick vaccines to rival in $1.1bn deal
Sale comes as pharma giant shifts its focus to cancer drug market
London-listed pharmaceutical giant GlaxoSmithKline (GSK) will sell two travel vaccines to Bavarian Nordic for around $1.1bn (£821m, €955m) in an effort to shift the company’s focus to the cancer drug market.
This comes in the wake of a $5.1bn acquisition of US cancer drugmaker Tesaro in January.
Bavarian Nordic, the Danish biotechnology firm, will purchase the Encepur and Rabipur (used to stop tick-borne encephalitis) from GSK with an upfront payment of €301m and milestone payments exceeding €495m.
Roger Connor, president of Global Vaccines at GSK, stated: “This agreement with Bavarian Nordic will enable us to commit greater resources to our key growth assets and to our R&D pipeline.”
What is your sentiment on GSK?
CEO Emma Walmsley has spearheaded the shift towards the cancer drug market since assuming the role in 2017. She is also overseeing the upcoming separation of GSK’s consumer-facing products and drugs businesses into separate entities.
The drugmaker last year reported total revenue of £30.82bn. Its share price is down on the month but up on the year to date, standing at around £1,628.53 in mid-morning trading.