GlaxoSmithKline plc has decided to divest its meningitis vaccines Nimenrix and Mencevax to Pfizer Ireland Pharmaceuticals, a subsidiary of Pfizer Inc. for a total consideration for £82 million (€115 million). It is expected that the sale will be completed before the end of the year. The necessary final approval from European Commission is expected in this month.
The sale follows commitments given to the European Commission and other regulators in connection with the merger control clearances obtained for GSK’s three-part transaction with Novartis AG, which completed on March 2, 2015. As part of the transaction, GSK acquired Novartis’s vaccines business (excluding influenza vaccines) including the meningitis vaccines Menveo and Bexsero. In order to satisfy regulatory clearances as part of the transaction, GSK agreed to divest its legacy meningitis vaccines Nimenrix and Mencevax, which are sold outside the US and achieved combined global sales of £34 million in 2014.
Pfizer Ireland Pharmaceuticals is deemed, under Listing Rule 11.1.4R, to be a related party of GSK as a result of holdings of the Pfizer group in ViiV Healthcare Limited.
The sale is a smaller related party transaction under Listing Rule 11.1.10R (1) and has been agreed following a confirmation from GSK’s sponsor that the terms of the sale are fair and reasonable as far as GSK’s shareholders are concerned.