Glaxo sells international non-core OTC brands to Aspen
GlaxoSmithKline's shareholders are set for another return of capital this year following the divestment of more non-core over-the-counter (OTC) brands in its international markets to Aspen Pharmacare Holdings.
GlaxoSmithKline's shareholders are set for another return of capital this year following the divestment of more non-core over-the-counter (OTC) brands in its international markets to Aspen Pharmacare Holdings.
The company announced on Friday afternoon that it will sell 'Phillips MOM', 'Solpadeine', 'Dequadin', 'Cartia' and 'Zantac' to Aspen for £163m. These brands generated sales of around £60m in 2011, the company said. Net profit on this disposal in 2012 is £105m before tax (after deducting transaction costs and a profit deferral of approximately £25m pre-tax arising because Aspen is an associate of GSK.
Net cash proceeds from the transaction are expected to be around £135m which will be returned to shareholders during 2012.
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In February 2011, the company announced that it intended to get rid of its Consumer Healthcare OTC brands which account for annual sales of around £500m. It was its aim to divest these products before the end of last year, subject to interest.
While divestments have not finished, total sales of these brands to date amounted to £370m n 2011, with total gross cash proceeds totalling £981m. Net cash proceeds are £690m.
The sale of weight-loss pill 'alli' still ongoing. "As previously stated, pending the resolution of a temporary third party supply interruption, the process to divest alli has been delayed.
Shares were up 1.0% at 1,468.5p by 13:21.
BC
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