GSK buys heart drug specialist for $1.65B

UK drug major GlaxoSmithKline has paid $1.65 billion for Reliant Pharmaceuticals, a privately-held US heart drug specialist which saw net sales of $341.0 million in the first nine months of 2007. Through the deal, GSK gains access to Reliant's portfolio of specialty medicines combating heart disease, including US rights to Lovaza (omega-3-acid ethyl esters), a treatment for adult patients with very high levels of triglycerides.

Launched in late 2005, Lovaza (formerly known as Omacor) achieved net sales of $206.0 million in the first three quarters of the year. The drug is indicated as an adjunct to diet to cut triglycerides in adults with very high (over 500mg/dL) triglyceride levels. According to analysts, given the growth rates expected in the market for lipid-lowering agents, Lovaza could achieve an annual income of $500.0 million within three years.

Reliant licensed the US rights to Lovanza from Norway's Pronova ABA, which will continue to supply the drug's active pharmaceutical ingredient as part of a prior deal with Reliant. The acquisition will also affect USA-based Alkermes which, in 2002, made a $100.0-million investment in Reliant in exchange for a 19% stake. Alkermes plans to use the proceeds to fund a stock buy-back.