GSK sells nearly $700M of shares in generic drug maker

Shares in Aspen Pharmacare Holdings, Africa’s largest generic-drugs maker, fell by 4 percent Wednesday on news that GlaxoSmithKline (NYSE: GSK) had cut its stake in the company at a discount to the share price.

Glaxo, which operates its North American headquarters in RTP, has agreed to sell 28.2 million Aspen shares for $694 million, the company said in a statement. The price is about 6.5 percent below Aspen’s shares at the close of trading on Tuesday in Johannesburg.

“Aspen’s shares have risen well, so Glaxo has made fairly good money,” Mila Mafanya, a fund manager at Afena Capital in Cape Town, said by phone. “This doesn’t seem to indicate a change in relationship between them, rather it’s probably a good time to take the profit.”

Glaxo’s stake in Aspen will be reduced to about 12 percent. It will retain its board seat and intends to remain a significant shareholder.

Aspen said on Sept. 30 it would buy Glaxo’s injectable thrombosis brands, manufacturing site, and inventory for more than $1 billion.

Aspen shares have climbed 52 percent this year, raising its price to 33 times earnings.