Pharma BD Deal Intelligence

GlaxoSmithKline plc / Laboratorios Phoenix

2010 · Acquisition/Merger · $253M · Complete

WRONG BY 51 POINTS

GSK bought Phoenix for $253M to build a Latin America branded-generics beachhead, ran it into the ground, and sold it back to its original owners seven years later for roughly $150M — a clear value-destroying reversal.

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The coverage arc

Jun 10, 2010 GlaxoSmithKline Form 6-K (LSE announcement) Bullish

'By acquiring Phoenix, we will rapidly expand our presence in the fast growing Argentine market... Phoenix's broad portfolio and rich pipeline of branded…

Aug 25, 2010 The Pharma Letter Bullish

GSK drives into Latin America's branded generics sector — Phoenix buy executes Witty's strategy of diversifying away from white-pill blockbusters into emerging…

Jan 01, 2020 Pharmabiz Bearish

Founder Hugo Sielecki repurchases Phoenix from GSK years after original sale — signaling the multinational's emerging-markets thesis underperformed…

Source summaries from our enrichment pipeline; follow links for originals.

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GSK acquired Argentine generics maker Laboratorios Phoenix for $253M to drive Latin America growth strategy.

Did it work? Outcome assessment

GSK bought Phoenix for $253M to build a Latin America branded-generics beachhead, ran it into the ground, and sold it back to its original owners seven years later for roughly $150M — a clear value-destroying reversal.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
GlaxoSmithKline plc / Laboratorios Phoenix (this deal)2010$253M20
GlaxoSmithKline plc / Theravance, Inc.2012$213M82
GlaxoSmithKline plc / Tesaro Inc.2018$5.1B79
GlaxoSmithKline plc / Pfizer Inc. (Consumer Healthcare Division)2018$12.7B76
GlaxoSmithKline plc / Novartis Consumer Healthcare JV2018$13.0B74
GlaxoSmithKline plc / ID Biomedical Corporation2005$1.4B64
GlaxoSmithKline plc / Vir Biotechnology Inc.2020$595M51

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