GSK also expects to assume $400m of net debt when the deal is closed. A potential further $300m cash payment is contingent on future performance.
GSK’s existing prescription dermatological products will be combined with Stiefel’s products and the new specialist global business will operate under the Stiefel identity within the GSK Group.
The business will have a broad portfolio of dermatology products, including Stiefel’s leading brands: Duac for acne, Olux E for dermatitis and Soriatane for the treatment of severe psoriasis. GSK’s key dermatology brands include Bactroban, Cutivate and the recently launched Altabax.
Combined revenues of the two companies in 2008 were approximately $1.5bn, representing an eight per cent share of the global prescription dermatology market.
Charles Stiefel will continue with his role of chief executive officer and chairman of the board of Stiefel until the deal is closed and he will then lead the new business.