GlaxoSmithKline PLC (LON:GSK) (NYSE:GSK) has agreed to sell two travel vaccines to Danish biotech firm Bavarian Nordic for up to €955mln.
Rabipur and Encepur are administered to prevent rabies and tick-borne encephalitis, respectively.
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Bavarian Nordic will pay €301mln up front, plus an instalment of €495mln and an estimated €159mln in additional revenues over the course of the supply arrangements.
GSK said it decided to sell these brands, acquired in 2015, to focus on other segments within its vaccines business.
“This agreement with Bavarian Nordic will enable us to commit greater resources to our key growth assets and to our research & development pipeline, while also ensuring the continued supply of these important and successful vaccines,” said Roger Connor, president at global vaccines at GSK.
Vaccines have been GSK's star performer in both quarters so far this year, with second-quarter sales soaring by more than a quarter to £1.59bn as demand for the Shingrix shingles treatment continuing to rise, while sales of HIV drugs were solid but growth was much slower in the pharmaceuticals arm.
The drugs giant in August sold off its consumer health business, which includes brands such as Sensodyne and Nicorette, into a 68%-owned joint venture deal with US rival Pfizer Inc (NYSE:PFE).