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GSK plans to divest non-core OTC brands in an effort to focus on its Consumer Healthcare business around a portfolio of priority brands and emerging markets.
April 15, 2011
By: Tim Wright
Editor-in-Chief, Contract Pharma
GSK plans to divest non-core OTC brands in an effort to focus on its Consumer Healthcare business around a portfolio of priority brands and emerging markets. The focus will be on three categories: Oral Health, Wellness/OTC and Nutrition, with brands such as Sensodyne, Panadol and Horlicks. The company hopes to divest the products by late 2011. The products to be divested, which are primarily sold in Europe and the U.S., include analgesics such as Solpadeine, BC and Goody’s, vitamin and supplement product Abtei, feminine hygiene treatment Lactacyd, and alli for weight management. These products accounted for approximately 10% or $807 million of GSK’s total Consumer Healthcare sales in 2010. The company also plans to sell its manufacturing site in Aiken. The brands manufactured at Aiken, include alli, Beano, Ecotrin, Nytol, Phazyme, Sominex and Tagamet/Stomedine. GSK’s chief executive officer Andrew Witty said, “Consumer Healthcare is a key growth driver for GSK. But it is important that we focus this business around product categories, brands and markets where we have most depth and competitive advantage, with the best prospects for strong growth. This divestment is also an example of our commitment to focus on realizing value and enhancing returns to shareholders.”
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