GSK to snap up Stiefel for $2.9b

GlaxoSmithKline Plc agreed to buy Stiefel Laboratories Inc, a closely held US drugmaker, for $2.9 billion in cash, adding remedies for skin ailments such as acne and diaper rash.

Glaxo may pay another $300 million depending on Stiefel's future performance, and will assume $400 million in debt, Glaxo said in a Regulatory News Service statement yesterday.

Buying Stiefel fits Glaxo Chief Executive Officer Andrew Witty's strategy of expanding in consumer products. Adding more vaccines, drugs and consumer treatments will help wean London-based Glaxo off its reliance on one or two bestsellers, Witty said in a Jan 8 interview.