GSK to purchase Shenzhen Neptunus stake in previously formed joint venture for influenza vaccines in China
Issued: Tuesday 14 June 2011, London, UK
GlaxoSmithKline (GSK) announced today that it has entered into an agreement to acquire the remaining 51% equity interest of Shenzhen Neptunus Interlong Bio-Technique Co. Ltd (Neptunus) in the joint venture (JV) company, Shenzhen GSK-Neptunus Biologicals Co. Ltd. (GSKNB), for a total cash consideration of£24 million (US$39 million). After approval of this agreement by the Peoples Republic of China's authorities, GSK will become the sole owner of GSKNB.
Established in June 2009, the GSKNB alliance focuses on the development and manufacture of seasonal and pandemic influenza vaccines for China, Hong Kong and Macau. GSK increased its equity share from 40% to 49% in August 2010.
The decision to acquire the outstanding interest in the GSKNB JV reflects GSK's intention to further expand its vaccines presence in China through the establishment of local vaccine manufacturing capability.
Commenting on the agreement, Jean Stephenne, Chairman and President GSK Biologicals, said, "The decision to acquire the remaining equity interest in GSKNB reflects the importance GSK places in expanding our product offering in China and making new vaccines available to improve public health in this fast growing emerging market. GSKNB employees have made good progress preparing the site for the production of influenza vaccines and we look forward to continuing this work."
"GSK has licensed more vaccines in China than any other global manufacturer and has packaged more than 100 million vaccines at our Shanghai facility. Today's announcement represents an expansion of GSK's long-term commitment to vaccine supply, manufacturing and development in China." said John Lepore, Vice President and General Manager, Biologicals and Corporate, GSK China.
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