Stiefel, GlaxoSmithKline deal

GlaxoSmithKline will acquire dermatology company Stiefel for $2.9 billion in cash. Stiefel shareholders are eligible to receive up to $300 million in milestones, and GSK expects to assume $400 million of Stiefel's net debt.

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