GlaxoSmithKline is moving to expand its drug product lineup by purchasing Reliant Pharmaceuticals for $1.65 billion.
Reliant, which is based in New Jersey, makes the drug Lovaza, which combats high levels of triglycerides, and other heart drugs. Excessive levels of triglycerides have been linked to heart disease.
GSK (NYSE: GSK), which maintains a major presence in Philadelphia and Research Triangle Park, N.C., said it expected the deal to produce positive earnings in 2008.
Reliant reported sales of $206 million through the first nine months of 2007 for Lovaza. The company produced overall revenues of $341 million, an increase of more than 60 percent from a year earlier.
GSK said Lovaza will augments its heart drug lineup, which includes Coreg CR. It combats hypertension and heart failure.
“The addition of Lovaza to the GSK portfolio adds a new driver of sales growth in the U.S. business,” said Chris Viehbacher, president, U.S. Pharmaceuticals. “It represents a strong strategic fit, complementing Coreg CR, a leading treatment for heart failure and hypertension, and adds to our growing profile in the cardiovascular disease area.”
The deal still requires approval from the U.S. Federal Trade Commission.