GSK Divests OTC Brands Worth $264.7 Million - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

GSK Divests OTC Brands Worth $264.7 Million


ePT--the Electronic Newsletter of Pharmaceutical Technology

GlaxoSmithKline has reached an agreement to divest certain over-the-counter (OTC) brands in select territories to South Africa’s Aspen Pharmacare Holdings for approximately $264.7 million.

According to GSK, the divestment will allow the company to focus on priority brands and markets. Divested brands include Phillips MOM, Solpadeine, Dequadin, Cartia, and Zantac, which generated combines sales of around $96.8 million in 2011. The divestment will be completed in the second quarter of this year, following the necessary regulatory approvals.

The agreement comprises two transactions. The first is Aspen Holdings’ acquisition of products sold in South Africa, Mabbia, Botswana, Swaziland, Lesotho, Zambia and Zimbabwe. The second transaction is Aspen’s acquisition of the products sold in the rest of the world, but excluding Europe and North America, which are the subject of separate transactions between GSK and third parties.

“The products acquired through these transactions are an excellent geographic fit with Aspen’s existing footprint and will allow for significant strengthening of Aspen’s OTC offering in all of the territories concerned,” Stephen Saad, chief executive of Aspen Group, said in a statement. “The products have considerable established brand equity, which Aspen intends to leverage through increased promotion and plans to expand through line extensions.

Aspen is funding the transactions though existing cash resources, existing credit facilities and new debt, with the latter funding approximately 50% of the transaction. The company has already made arrangements for raising the new debt.

In a statement, GSK added that it also plans to divest alli, but the process has been delayed pending the resolution of a temporary third-party supply interruption.

ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
Which of the following business challenge poses the greatest threat to your company?
Building a sustainable pipeline of products
Attracting a skilled workforce
Obtaining/maintaining adequate financing
Regulatory compliance
Building a sustainable pipeline of products
26%
Attracting a skilled workforce
29%
Obtaining/maintaining adequate financing
14%
Regulatory compliance
31%
View Results
Eric Langer Outsourcing Outlook Eric LangerBiopharma Outsourcing Activities Update
Cynthia Challener, PhD Ingredients Insider Cynthia Challener, PhDAppropriate Process Design Critical for Commercial Manufacture of Highly Potent APIs
Jill Wechsler Regulatory Watch Jill Wechsler FDA and Manufacturers Seek a More Secure Drug Supply Chain
Sean Milmo European Regulatory WatchSean MilmoQuality by Design?Bridging the Gap between Concept and Implementation
Report: Pfizer Makes $101 Billion Offer to AstraZeneca
Medicare Payment Data Raises Questions About Drug Costs
FDA Wants You!
A New Strategy to Tackle Antibiotic Resistance
Drug-Diagnostic Development Stymied by Payer Concerns
Source: ePT--the Electronic Newsletter of Pharmaceutical Technology,
Click here