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
FDASIA was signed into law two years ago. Where has the most progress been made in implementation?
Reducing drug shortages
Breakthrough designations
Protecting the supply chain
Expedited reviews of drug submissions
More stakeholder involvement
Reducing drug shortages
70%
Breakthrough designations
4%
Protecting the supply chain
17%
Expedited reviews of drug submissions
2%
More stakeholder involvement
7%
View Results
Eric Langerr Outsourcing Outlook Eric LangerRelationship-building at Top of Mind for Clients
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerRisk Reduction Top Driver for Biopharmaceutical Raw Material Development
Jill Wechsler Regulatory Watch Jill Wechsler Changes and Challenges for Generic Drugs
Faiz Kermaini Industry Insider Faiz KermainiNo Signs of a Slowdown in Mergers
Ebola Outbreak Raises Ethical Issues
Better Comms Means a Fitter Future for Pharma, Part 2: Realizing the Benefits of Unified Communications
Better Comms Means a Fitter Future for Pharma, Part 1: Challenges and Changes
Sandoz Wins Biosimilar Filing Race
NIH Translational Research Partnership Yields Promising Therapy
Source: ePT--the Electronic Newsletter of Pharmaceutical Technology,
Click here