GSK buys Shenzhen Neptunus stake

GlaxoSmithKline (GSK) has entered into an agreement to acquire the remaining 51 per cent stake of Shenzhen Neptunus Interlong Bio-Technique Co in the joint venture (JV) company, Shenzhen GSK-Neptunus Biologicals Co (GSKNB), for £24m ($39m) in cash. 

Established in June 2009, the GSKNB alliance focuses on the development and manufacture of seasonal and pandemic influenza vaccines for China, Hong Kong and Macau. GSK increased its share from 40 per cent to 49 per cent in August 2010.

Jean Stephenne, chairman and president GSK Biologicals, said: "The decision to acquire the remaining equity interest in GSKNB reflects the importance GSK places in expanding our product offering in China and making new vaccines available to improve public health in this fast growing emerging market. GSKNB employees have made good progress preparing the site for the production of influenza vaccines and we look forward to continuing this work."

After approval of this agreement by the Peoples Republic of China's authorities, GSK will become the sole owner of GSKNB.