GlaxoSmithKline sells rights to cold sore drug to Canadian pharma

GlaxoSmithKline has sold the rights to topical drug Zovirax to a Canadian

pharmaceutical company for $300 million.

Valeant Pharmaceuticals (NYSE:VRX) said its subsidiary Biovail Laboratories has signed

agreements to acquire all U.S. and Canadian rights to Zovirax, a cold sore treatment

that comes in creams and ointments. Biovail had previously been the exclusive

distributor of the drug in the United States. The deal with GSK (NYSE:GSK), which has

its U.S. headquarters in North Carolina’s Research Triangle Park, expands Biovail’s

geographic rights to include Canada. Valeant CEO J. Michael Peason said in a statement

that Valeant’s sales and marketing staff in the United States and Canada can ’

revitalize and grow the brand.’

The deal is still subject to closing conditions and regulatory approvals. Zovirax

accounts for more than $146 million in annual sales in the United States for Valeant.

The product generated $246 million in 2010 sales for GSK.