KARACHI, Dec 22: Glaxo Smith Kline Pakistan (GSKP) announced on Monday that it had entered into a definitive agreement through which it would acquire Bristol Myers Squibb Pakistan (BMSP) and certain associated trademarks for approximately $36.5 million (24.6 million pounds).

However, BMSP and GSKP would continue operating as separate entities until a formal legal integration takes place. For BMSP employees it will be business as usual.

Completion of acquisition is expected by early next year.

GSKP Manager Corporate Communication Naufil Shahrukh told Dawn that the workforce of GSKP, a public listed company, stood at 2,000 while the BMSP, a private limited company, had more than 200 employees on its payroll.

On impact of acquisition, he said that the transaction, when complete, would increase GSKP’s pharmaceutical market share from estimated 11 per cent to approximately 13 per cent. However, there would be no increase in consumer market share.

He added that the acquisition was in line with GSK’s emerging market strategy of growing its international non-patent protected business.

“The combination of this business with the existing GSK business will build on GSK’s successful operations in the local market and will provide an opportunity for generating additional future growth.”

He added that it would also provide GSK with strategic access to key emerging markets in Asia such as Sri Lanka and Bangladesh.

GSK has been present in Pakistan for the last 60 years and is committed to stay and invest in the country’s healthcare sector, he said.

Pakistan’s pharmaceutical industry is well developed and has future potential because of the significant population, increasing incomes and the expanding healthcare sector in which the government is investing, he added.

Though the pharmaceutical industry environment in Pakistan has been challenging in recent years, due to a price freeze since 2001, GSKP is working closely with the Ministry of Health and hopes that there will be a resolution to this issue through a rational and equitable drug pricing policy, the GSKP spokesman said.

The BMSP portfolio includes well established brands that enjoy a good position in the local pharmaceutical market.

According to GSK’s press release available on its website, the GSK will acquire a portfolio of over 30 well-established pharmaceutical brands many of which occupy leading market positions in key therapeutic diseases in Pakistan.

The BMSP portfolio, which includes antibiotics, vitamins and dermatology products is complementary to GSK’s existing portfolio and will also provide new opportunities for GSK in the fast growing therapeutic areas of cardiovascular and oncology. Total sales of BMSP product portfolio in 2007 were Rs1.5 billion.