GlaxoSmithKline plc (ADR) (NYSE:GSK) has struck a deal with Pfizer Inc. (NYSE:PFE) where the latter will buy two of Glaxo’s vaccines for about $30 million.
The vaccines are designed for global efforts to prevent meningococcal disease. Pfizer consented to acquire the two drugs, namely Mencevax and Nimenrix that will both be used as single doses against the disease. Nimenrix is currently permitted for sale in 61 countries outside the United States while the counterpart drug, Mencevax is allowed in 79 countries outside the United States.
The drugs have been in use to curb any outbreaks of the disease while at the same time they are administered as vaccines to individuals traveling to the regions where the disease is active. Glaxo decided to remove the drug from its portfolio in bid to ease antitrust issues from regulatory authorities. Pfizer’s acquisition comes after the company had acquired another vaccine used to treat the same disease last year. The NeisVac-C vaccine was acquired from Baxter International Inc.
At the same time, Pfizer Inc. (NYSE:PFE) drug Trumenba received approval in the United States. The Drug was designed as a vaccine against erogroup B meningococcal disease for persons between years and 25 years old. The President of Pfizer Vaccines, Susan Silbermann announced the two additional drugs from Glaxo will be a significant addition allowing Pfizer to respond comprehensively to meningococcal disease outbreaks.
The transaction between the two firms is expected to reach its peak before the year ends. Pfizer also announced that the purchase is not expected to have a substantial impact on the financial performance of the company. Pfizer has been busy making an impact in the pharmaceutical industry. The company is one of the major players in the market especially with the increasing number of upcoming pharmaceutical companies with revolutionary treatments. The firm has also been involved in various acquisitions strategically aimed at solidifying its position.
GlaxoSmithKline plc (ADR) (NYSE:GSK) has been struggling to maintain a leadership position, but the competition is proving too strong. Some competitors have been manufacturing drugs that are ranked better in terms of performance and pricing thus making it harder for Glaxo.