GlaxoSmithKline to Buy Novartis AG’s Stake in Consumer-Health Joint Venture for $13B

One of the biggest headlines in the healthcare arena on Tuesday was that GlaxoSmithKline Plc, has agreed to purchase Novartis AG’s stake in their consumer-health joint venture for $13 billion.

GlaxoSmithKline, which is the U.K.’s biggest drugmaker, has decided to make the purchase instead of bidding for a Pfizer Inc. unit.

According to the company’s leader, buying the Novartis holding would strengthen the company’s consumer business. Products in the holding include Sensodyne toothpaste, Theraful, and Panadol.

The sale is expected to close in the second quarter.

Novartis CEO Vas Narasimhan remarked, “While our consumer health-care joint venture with GSK is progressing well, the time is right for Novartis to divest a noncore asset at an attractive price.”

It was last week that GlaxoSmithKline removed itself from the bidding contest for Pfizer’s consumer-health unit.

Disclaimer: We have no position in GlaxoSmithKline plc (ADR) (NYSE: GSK) nor Novartis AG (ADR)
(NYSE: NVS) and have not been compensated for this article.