Pharma BD Deal Intelligence
GSK's $1.65B all-cash buy of Reliant delivered a genuine blockbuster: Lovaza grew fast post-close, topping $1B in global sales by 2010-2011. But a 2013 appeals-court patent invalidation opened the door to generics in 2014, and revenue collapsed so completely that GSK sold off the remaining Lovaza rights in 2021.
Blockbuster ramp, then a patent-cliff crash: Lovaza paid back well for ~6 years before generics gutted it and GSK exited entirely by 2021
Full analysis, sources & comparables →Reliant 9-month sales of $341M (+62% YoY); Lovaza grew 115% YoY to $206M; GSK expected slight 2008 EPS accretion ex-integration.
Generic omega-3-acid ethyl esters became available in April 2014; FDA noted dose-dependent atrial fibrillation risk at 4g/day, eroding the post-2014 franchise.
Source summaries from our enrichment pipeline; follow links for originals.
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GlaxoSmithKline acquired Reliant Pharmaceuticals for $1.65B in cash, gaining Lovaza (omega-3-acid ethyl esters), a fast-growing prescription hypertriglyceridemia therapy that represented ~60% of Reliant's revenue. The deal added a US cardiovascular growth driver complementary to Coreg CR; generic entry from 2014 and FDA atrial-fibrillation warnings later eroded the franchise.
Blockbuster ramp, then a patent-cliff crash: Lovaza paid back well for ~6 years before generics gutted it and GSK exited entirely by 2021
Assessment window: 15yr post-close.
$2.2B US non-statin dyslipidemia market 2006
Severe hypertriglyceridemia (≥500 mg/dL) affects roughly 1.7% of US adults and carries acute pancreatitis risk plus contribution to ASCVD. Treatment is multifactorial — diet, glycemic control, fibrates, niacin, and prescription omega-3s — because statins alone are insufficient at very high TG levels.
In late 2007, Lovaza (omega-3-acid ethyl esters, then trading as Omacor) was the only FDA-approved prescription omega-3 for severe hypertriglyceridemia, demonstrating up to 45% TG reduction. It competed in the ~$2.2B US non-statin dyslipidemia segment growing >20% annually against TriCor/Trilipix (fenofibrate, Abbott), Niaspan (extended-release niacin, Kos/Abbott), and Lopid (gemfibrozil, generic). Lovaza had captured ~10% market share by September 2007 with 9-month sales of $206M (+115% YoY). For GSK, the deal added a high-growth specialty cardiovascular asset complementary to Coreg CR (carvedilol) and 650 Reliant sales reps to amplify primary-care reach. Risks not fully appreciated at deal time: (1) Vascepa (icosapent ethyl, Amarin) FDA approval in 2012 with cleaner EPA-only profile and eventual REDUCE-IT cardiovascular outcomes data; (2) generic omega-3 entry from April 2014; (3) STRENGTH trial questioning EPA/DHA cardiovascular benefit. By 2014 Lovaza was generic, and the franchise underperformed initial GSK forecasts.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| GlaxoSmithKline plc / Reliant Pharmaceuticals Inc. (this deal) | 2007 | $1.6B | 47 |
| GlaxoSmithKline plc / Theravance, Inc. | 2012 | $213M | 82 |
| GlaxoSmithKline plc / Tesaro Inc. | 2018 | $5.1B | 79 |
| GlaxoSmithKline plc / Pfizer Inc. (Consumer Healthcare Division) | 2018 | $12.7B | 76 |
| GlaxoSmithKline plc / Novartis Consumer Healthcare JV | 2018 | $13.0B | 74 |
| GlaxoSmithKline plc / ID Biomedical Corporation | 2005 | $1.4B | 64 |
| GlaxoSmithKline plc / Vir Biotechnology Inc. | 2020 | $595M | 51 |
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