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According to the companies, GSK will receive 36.5% of the joint venture established in 2015. The payment will be made in cash. After completion of the transaction, 4 out of 11 JV directors appointed by Novartis will resign.
Last week, GSK refused its intention to purchase a division of OTC drugs (Consumer Healthcare) from American Pfizer, estimated by experts at $ 20 billion.
Novartis is gradually moving out of the over-the-counter segment. The new head of the Swiss pharmaceutical company, Vas Narasimhan, wants to focus on other directions, writes the Financial Times. He sees the future of Novartis as an innovative, scientific and technological company developing new drugs.
The sale of a stake in the joint venture with GSK spurred the market expectations that Novartis is ready to use the same way to dispose of the stake in Roche (its 6% is estimated at $ 14 billion).
Earlier Novartis also planned to allocate the Alcon division, which produces ophthalmic products, to an independent company and conduct its listing on the stock exchange. However, the decision was postponed until 2019. According to industry experts, Alcon can cost more than $ 25 billion.
GlaxoSmithKline’s shares at the auctions in London on Tuesday add 2.3% in the price, the price of Novartis securities in Zurich rose by 1.5%.
Previously, GSK refused to purchase the US-based Pfizer OTC (Consumer Healthcare), estimated by experts at $ 20 billion.
The day before, it became known that the British chemical concern Reckitt Benckiser also refused to purchase this unit.
GSK, the global leader in over-the-counter products, was considered the most likely bidder for the purchase of Pfizer assets after the failure of Reckitt Benckiser.
"We will continue to assess opportunities that can accelerate the implementation of our strategy, but they must meet our income criteria and should not run counter to our priorities in terms of capital allocation," said GSK CEO Emma Walmsley in a statement published on the British company’s website.
source: marketwatch.com
Last week, GSK refused its intention to purchase a division of OTC drugs (Consumer Healthcare) from American Pfizer, estimated by experts at $ 20 billion.
Novartis is gradually moving out of the over-the-counter segment. The new head of the Swiss pharmaceutical company, Vas Narasimhan, wants to focus on other directions, writes the Financial Times. He sees the future of Novartis as an innovative, scientific and technological company developing new drugs.
The sale of a stake in the joint venture with GSK spurred the market expectations that Novartis is ready to use the same way to dispose of the stake in Roche (its 6% is estimated at $ 14 billion).
Earlier Novartis also planned to allocate the Alcon division, which produces ophthalmic products, to an independent company and conduct its listing on the stock exchange. However, the decision was postponed until 2019. According to industry experts, Alcon can cost more than $ 25 billion.
GlaxoSmithKline’s shares at the auctions in London on Tuesday add 2.3% in the price, the price of Novartis securities in Zurich rose by 1.5%.
Previously, GSK refused to purchase the US-based Pfizer OTC (Consumer Healthcare), estimated by experts at $ 20 billion.
The day before, it became known that the British chemical concern Reckitt Benckiser also refused to purchase this unit.
GSK, the global leader in over-the-counter products, was considered the most likely bidder for the purchase of Pfizer assets after the failure of Reckitt Benckiser.
"We will continue to assess opportunities that can accelerate the implementation of our strategy, but they must meet our income criteria and should not run counter to our priorities in terms of capital allocation," said GSK CEO Emma Walmsley in a statement published on the British company’s website.
source: marketwatch.com
