GSK to acquire Stiefel

GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) will acquire dermatology company Stiefel Laboratories Inc. (Coral Gables, Fla.) for $2.9 billion in cash. Stiefel shareholders are eligible to receive up to $300 million in milestones, and GSK also expects to assume $400 million of Stiefel's net debt.

GSK plans to combine the companies' dermatology products and operate the new business under the Stiefel identity, with Stiefel Chairman and CEO Charles Stiefel leading the business. The companies said the combined dermatology portfolio had 2008 revenues of $1.5 billion, representing an 8% share of the global prescription dermatology market. Stiefel had sales of $900 million in 2008. ...