Pharma BD Deal Intelligence

GlaxoSmithKline plc / Stiefel Laboratories

2009 · Acquisition/Merger · $3.6B · Complete

WRONG BY 41 POINTS

GSK's $3.6B dermatology bet was progressively dismantled: sold off in pieces over the next decade for a fraction of the price, and by 2019 GSK was trying to exit prescription dermatology altogether.

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Ranks computed across 828 graded deals (Critic + Outcome Score both present).

The coverage arc

Apr 20, 2009 GSK Bullish

CEO Andrew Witty: 'This transaction will create a new world-leading, specialist dermatology business' — $2.9B cash + $0.4B debt + $0.3B contingent;…

Apr 21, 2009 Pharmaceutical Executive Bullish

Pharmaceutical Executive noted GSK was buying into a fragmented Rx dermatology market (top 20 = <58% share, $11.7B in 2007, 10% YoY growth), positioning the…

Apr 21, 2009 S&P Global Market Intelligence Neutral

S&P highlighted analyst skepticism — Credit Suisse's Luisa Hector warned dermatology 'tends to be old molecules with limited innovation in formulations' — even…

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

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In April 2009, GlaxoSmithKline agreed to acquire Stiefel Laboratories, the world's largest independent dermatology company, in a transaction valued at up to $3.6 billion -- comprising $2.9 billion in cash, roughly $0.4 billion of assumed net debt, and up to $0.3 billion in contingent payments. The deal closed on July 22, 2009, creating a new world-leading specialist dermatology business that GSK expected to generate up to $240 million in annual pre-tax cost savings by 2012.

Did it work? Outcome assessment

GSK's $3.6B dermatology bet was progressively dismantled: sold off in pieces over the next decade for a fraction of the price, and by 2019 GSK was trying to exit prescription dermatology altogether.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
GlaxoSmithKline plc / Stiefel Laboratories (this deal)2009$3.6B29
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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