Glaxo Sets Deal For Bristol's HIV Drugs

   (FROM THE WALL STREET JOURNAL 12/21/15) 
   By Denise Roland 

LONDON -- GlaxoSmithKline PLC has agreed to pay Bristol-Myers Squibb up to $1.5 billion to acquire the U.S. company's pipeline of HIV drugs, a move which will bolster one of the U.K. drugmakers' strongest-performing areas.

Glaxo said it would pay Bristol $317 million upfront for the company's late-stage HIV drugs, plus $518 million depending on the drugs hitting particular development and commercial milestones.

It will also pay Bristol $33 million upfront for its early-stage HIV portfolio, plus $587 million in contingent milestone payments.

The deal will strengthen the pipeline at ViiV Healthcare, an HIV business largely owned by Glaxo. Pfizer Inc. and Japan's Shionogi are minority partners. ViiV is the second-largest HIV business by market share, after Gilead Sciences Inc.

ViiV has been a bright spot for Glaxo over the past year thanks to strong sales of two new drugs. Revenue from the HIV business increased 65% in the third quarter, offsetting falling sales elsewhere in the company's large pharmaceuticals unit.

The U.S. company in June announced plans to end its virology research efforts, which span HIV and hepatitis. Bristol said around 20 employees would be offered the opportunity to transfer to ViiV following the transaction.

The deal doesn't include Bristol's marketed HIV drugs, which include Reyataz, Evotaz, Sustiva and Atripla.

The companies said they expected the transactions to close in the first half of 2016.

(END) Dow Jones Newswires

December 21, 2015 02:47 ET (07:47 GMT)

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