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.”
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.