Glaxosmithkline selling two anti-rabies vaccines to a Danish rival for £822m
GlaxoSmithKline is selling two anti-rabies vaccines to a Danish rival for £822m.
The British drugs group said the sale of anti-rabies treatment Rabipur and Encepur to Bavarian Nordic includes an upfront payment of £259m and later payments of up to £563m.
GSK’s boss Emma Walmsley is continuing with an overhaul of the company, which is posed for a fresh push into the lucrative cancer drug market.
Sign of the times: GSK’s boss Emma Walmsley is continuing with an overhaul of the company
Since taking over in 2017, Walmsley has sought to focus on GSK’s pharmaceuticals business with a plan that will culminate in the demerger of the consumer division in 2021.
Roger Connor, president of global vaccines at GSK, said: ‘This agreement with Bavarian Nordic will enable us to commit greater resources to our key growth assets and to our research and development pipeline.’
GSK acquired the two vaccines from Novartis in 2015 as part of an asset swap in which it sold its cancer drugs business to its Swiss rival.
GSK reported revenue of £5.9 billion from its vaccines segment in 2018.
The company said both vaccines will continue to be manufactured at its Marburg site in Germany until full production is transferred to Bavarian Nordic within five years.
Shares in Glaxosmithkline fell after the announcement yesterday, however, closing 0.4 per centlower, or 6.4p, at 1639.8p.