GlaxoSmithKline Divests Affymax Business to Venture Syndicate Led By Patricof & Co. Ventures, Inc.

Jul 30, 2001, 01:00 ET from GlaxoSmithKline plc

    PHILADELPHIA, July 30 /PRNewswire/ -- GlaxoSmithKline plc (NYSE:   GSK)
 (GSK) today announced an agreement for the sale of the Affymax business, a GSK
 drug-discovery operation in California, to Affymax Inc. a new company founded
 by a syndicate of venture capital firms led by Patricof & Co. Ventures, Inc.
     Glaxo Wellcome originally purchased the Affymax business as a technology-
 development centre, focused on combinatorial chemistry and high-throughput
 screening.  However, the Affymax business has moved on to become a drug-
 discovery company.  GSK's decision follows a review of its drug discovery
 operations.  The Affymax business technologies of combinatorial chemistry and
 high throughput screening will continue to be used in the GSK R&D
     Under the terms of the divestiture, which are subject to a definitive
 agreement, GSK will receive non-voting preferred stock in Affymax Inc. in
 exchange for the Affymax business.  GSK will not participate in the management
 of Affymax Inc, nor have any representation on the Board.  The transaction is
 expected to be completed within the next month.
     The transaction to sell the Affymax business will be recorded as a sale of
 net assets worth approximately 3 million pounds sterling and will result in
 cost savings to GSK.  As a result of the sale, an exceptional charge of
 approximately 305 million pounds will be made in the current financial year.
 This charge includes a goodwill write-off of 299 million pounds which arose on
 the original purchase of the Affymax business and was previously written-off
 to reserves.  To comply with current accounting standards on disposals, this
 goodwill will be re-instated and then written-off as an exceptional charge to
 the P&L account.
     GlaxoSmithKline - one of the world's leading research-based pharmaceutical
 and healthcare companies - is committed to improving the quality of human life
 by enabling people to do more, feel better, and live longer.
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SOURCE GlaxoSmithKline plc