GSK acquires stake in Novartis’s consumer healthcare business
Date: 2018-03-28   Author: Saipriya Iyer  Category: #market

GSK acquires stake in Novartis’s consumer healthcare business

GlaxoSmithKline, a renowned pharmaceutical giant, has announced that it will acquire 36.5% of the ownership rights in Novartis’s consumer healthcare venture for USD 13 billion in cash.  For the record, last week, GSK withdrew its acquisition bid for Pfizer’s consumer healthcare business through which it had expected to accrue nearly USD 20 billion in terms of revenue. Currently though, GSK is anticipated to take complete control of Novartis’s venture, including the Sensodyne toothpaste, Nicotinell patches, Panadol headache medicines, and muscle gel Voltaren.

Emma Walmsley, the CEO of GlaxoSmithKline has stated that the proposed deal will help in addressing the firm’s key capital allocation priorities and help GSK investors in realizing the complete value of the leading consumer healthcare firm. The move will increase adjusted earnings and cash flows resulting in the improved performance for the company, she says. Further on, Walmsley adds that the deal would help the organization invest its capital in other activities such as pharmaceuticals R&D.

As per reliable sources, this pact is expected to be finalized during the second quarter of this year subject to the necessary approvals. Vas Narasimhan, the CEO of Novartis, has said that the firm is likely to divest one of its many non-core assets at a rather lucrative price.

According to an official statement, Novartis will use the proceeds from the deal for expanding its business and for the bolt-on acquisitions. After the declaration, the firm has incidentally witnessed a 2.2% rise in the pre-market indications in Zurich.

GSK has announced that it will review Horlicks and other consumer nutrition products, which will also include an assessment of the share it holds in its Indian subsidiary - GSK Consumer Healthcare Limited. It has been speculated that numerous other pharma firms are likely to follow GSK’s footsteps, which would eventually support the expansion of the global consumer healthcare business.



About Author


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

Growth Factors of Optical Interconnect Connectors Market with Emerging Trends and Revenue Estimation By 2025
Author: Sachin Pashte

Worldwide Global Optical Interconnect Connectors Market report of 2019 provides a detailed market overview as well as industry analysis for / of companies, manufacturers and distributors covering data on gross margin, cost structure, value, sale p...


Business Outline of Bipolar Electrostatic Chucks Market 2020- 2025 To Surge in The Near Future with Rapid Revenue Growth Across Key Industries
Author: Sachin Pashte

The Global Bipolar Electrostatic Chucks Market 2019 Research Report investigates the industry thoroughly and offers a complete study on Bipolar Electrostatic Chucks volume, market Share, market Trends, Global Bipolar Electrostatic Chucks Growth as...


Global Reducer Bearing Market Report, Key Players, Size, Share, Analysis 2020 and Forecast To 2025
Author: Sachin Pashte

Global Reducer Bearing Market report focuses on the major drivers and restraints for the key players. It also provides granular analysis of the market share, segmentation, revenue forecasts and geographic regions of the market. The Reducer Bearing...