GlaxoSmithKline plc (GSK) announced that it will acquire the Egyptian mature products business of Bristol Myers Squibb (BMS), for $210 (£125) million, in a move to accelerate sales growth and further extend its pharmaceutical portfolio in emerging markets. Completion of the acquisition is expected by the end of October 2008.

Commenting on the acquisition Abbas Hussain, president Emerging Markets, GSK said, "This acquisition is an important step forward in GSK's strategy to accelerate sales growth in emerging markets. It will enable us to build and diversify our existing branded pharmaceuticals portfolio and signals our strong commitment to provide quality medicines to patients in Egypt and other countries in the Middle East and North Africa region."

As a result of the acquisition, GSK will become the leading pharmaceutical company in Egypt with a market share of approximately 9 per cent. GSK will acquire 20 branded products that occupy leading market positions in four therapeutic disease areas in Egypt, including Duricef (antibiotic); Capozide and Capoten (ACE inhibitors); Theragran-H (iron supplement) and Kenacomb (topical steroid). Total sales of this combined mature products pharmaceuticals business in 2007 were $48.5 million. The addition of these brands to GSK's existing portfolio reflects the company's strategic intent to build a portfolio that is appropriately tailored to the needs of patients in emerging markets such as Egypt.GSK will also take ownership of BMS's high quality manufacturing facility in Giza (Greater Cairo) that will continue to supply the acquired products.

In addition, as a consequence of the acquisition, GSK will have the ability to export generic versions of the acquired products to markets outside of Egypt, thereby creating a further opportunity to drive sales growth in the Middle East and North Africa (MENA) region.

Egypt is the fourth largest economy in the MENA region with a population of 76 million representing one-quarter of the entire region's population. The pharmaceutical market in Egypt is worth approximately $2.1 (£1.1) billion and grew last year by 19 per cent in value.