GSK to acquire BMS Pakistan

GlaxoSmithKline (GSK) is to acquire Bristol-Myers Squibb Pakistan (BMSP) and certain associated trademarks for around US$36.5m (£24.6m).

Commenting on the acquisition, Abbas Hussain, GSK's president, emerging markets, said: "We are continuing to make investments in emerging markets, to grow and diversify GSK's business. This acquisition reinforces our commitment to Pakistan, broadening our product portfolio and helping us to meet the needs of patients."

GSK will acquire a portfolio of more than 30 well-established pharmaceutical brands. The BMSP product portfolio, which includes antibiotics, vitamins and dermatology products complements GSK's existing portfolio and will also provide the company with new opportunities in the fast-growing therapeutic areas of cardiovascular and oncology. BMSP's total sales in 2007 were approximately US$19m.

Completion of the acquisition is expected early this year.

GSK has been operating in Pakistan since 1948 and claims to be a market leader in the local industry in value, volume and prescription shares.

Pakistan has a population of approximately 161 million people. The country's pharmaceutical business is valued at US$1.2bn.

This acquisition follows the agreement GSK announced with South Africa-based pharmaceuticals company Aspen in July 2008, which significantly extended GSK's pharmaceuticals portfolio in emerging markets; and the acquisition of the Egyptian mature products business of Bristol-Myers Squibb, announced in October 2008.

Emerging markets are forecast to account for 40% of growth in the worldwide pharmaceutical market by 2020.