Smithkline Beecham Plc has signed agreements to sell the rights to three of its products in order to clear the way for its merger with Glaxo Wellcome Plc.
SB is having to sell the antiemetic Kytril (granisetron) and the antivirals Famvir (famciclovir) and Vectavir (penciclovir) because GW sells Zofran (ondansetron), Zovirax (aciclovir) and Valtrex (valaciclovir) in the same therapeutic areas and regulatory approval for the merger would not be forthcoming without some divestments.
Roche is to buy the global rights to Kytril for $1.23bn (£0.83bn), including the rights to develop, manufacture and market the product. SB will continue to manufacture Kytril for three years under licence. At the same time, SB will purchase the rights to sell Coreg (carvedilol) in the United States and Canada from Roche for $400m.
Novartis is to buy the global rights to Famvir and Vectavir for $1.63bn. Again, SB will continue manufacturing for three years.
SB says that the money raised will be used for "general corporate purposes". The deals will take effect after the merger of SB and GW to form Glaxo Smithkline, which is expected to take place on September 25.