Swiss drugmaker, Novartis agreed to sell GSK its stake in their consumer health joint venture for $13bn.
GlaxoSmithKline will be getting the full control of products including Sensodyne toothpaste, Panadol headache tablets, muscle gel Voltaren, and Nicotinell patches.
What is Consumer Healthcare Products?
It is also known as OTC products. Consumer remedies sold over the counter have lower margins than prescription drugs, but they are typically very well known and durable brands with loyal customers. Customers can directly purchase OTC brands from medical shop or online portals like amazon, etc.
In recent past, GSK was for Pfizer’s consumer healthcare division…
GSK previously was bidding for Pfizer’s consumer healthcare division. Pfizer has been struggling to sell its consumer healthcare business after GSK and Reckitt Benckiser dropped out of the bidding, while differences in price expectations have also hobbled German drugmaker Merck KGaA’s attempts to sell its consumer products unit.
For Novartis it’s all about consolidation on non core assets (divesting non core asset for aligning portfolio)…
“The time is right for Novartis to divest a non-core asset at an attractive price. This will strengthen our ability to allocate capital to grow our core businesses, drive shareholder returns and execute value creating bolt-on acquisitions as we continue to build the leading medicines company, powered by digital and data.” Novartis CEO Vas Narasimhan said.