GSK to Acquire Reliant Pharmaceuticals

GlaxoSmithKline has entered an agreement to acquire Reliant Pharmaceuticals Inc. for $1.65 billion in cash. Reliant is a privately held specialty pharma company focused on cardiovascular therapies. In the nine months ending September 30, 2007, the company’s net sales were $341 million, up 62% YTD.

Through its strategic in-licensing strategy, Reliant has developed a portfolio of specialty drugs for heart disease, including U.S. rights to Lovaza, a treatment for adult patients with very high levels of triglycerides. Launched in late 2005, Lovaza achieved $206 million in sales, up 115% in the nine months ending September 30, 2007. Reliant currently markets three other in-licensed cardiovascular products: high blood pressure treatments DynaCirc CR and InnoPran XL, and Rythmol SR, which treats abnormal heart rhythms, or arrhythmia.

Chris Viehbacher, president, U.S. Pharmaceuticals, GSK, said, “The addition of Lovaza to the GSK portfolio adds a new driver of sales growth in the US business. 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.”

“Today is a momentous date for Reliant,” said Bradley T. Sheares, chief executive officer of Reliant. “We are very proud of the work that our employees have done to build this company, particularly the energy and perseverance of our sales teams, who have demonstrated their worth in building a formidable Lovaza franchise in less than 24 months. We see great additional potential through this acquisition for Lovaza and the patients who could benefit from it.”

The acquisition is subject to approval by the U.S. FT C and is expected to close before year-end.