British drugmaker GlaxoSmithKline PLC said Monday it will pay $2.9 billion to buy U.S. dermatology business Stiefel Laboratoriesthe latest deal in a flurry of mergers and acquisitions in the pharmaceuticals industry.
GlaxoSmithKline will also assume $400 million in debt and has agreed to a further payment of up to $300 million depending on performance, bringing the total cost of the deal to up to $3.6 billion.
For Glaxo, the world's second-biggest drugmaker by revenue, it's the second midsize deal in less than a week. Last Thursday, Glaxo and No. 1 Pfizer Inc. said they are combining their HIV businesses 11 medicines on sale and a half-dozen more in human testing to create a new company. They will vault to the No. 2 market position, putting up $373 million in initial capital.
Privately owned Stiefel, the world's biggest independent dermatology company, makes prescription and over-the-counter medications including acne treatments and other skin creams, lotions, washes and vitamins. The Coral Gables, Fla., company put itself up for sale earlier this year, and reportedly had drawn interest from Johnson & Johnson and Novartis AG as well as Glaxo.