Novartis Sells Stake To Britain GlaxoSmithKline GSK
Novartis Sells Stake To Britain GlaxoSmithKline GSK: Novartis, the Swiss pharmaceuticals giant has announced on Tuesday that it will sell its stake. The company made this decision in its “consumer healthcare joint venture” to Britain’s GlaxoSmithKline for $13 billion (10.4 billion euros). Completion of the deal is expected subject to necessary approvals till the second quarter of 2018.
Novartis in January reported about their good operational performance due to the strong sales of two of its main blockbuster drugs and their net profit climbed by 15 % to $7.7 billion in 2017 on a 1% increase in sales to $49.1 billion.
Reason for Selling 36.5% Stake
As Novartis continue to build the leading medicines company, powered by digital and data the reason of selling its stakes are following
- Inorder to further focus on the development and growth of its core businesses.
- To strengthen Novartis ability to allocate capital to grow core businesses, drive shareholder returns, and execute value creating bolt-on acquisitions
Novartis and GSK set up the ‘consumer healthcare joint venture” in 2015 following after a major reorganization of the Swiss group’s drugs portfolio.
Gsk Will Use The Capital
- for other priorities, especially pharmaceutical’s research and development
GlaxoSmithKline’s net profits jumped 70 percent to 1.5 billion ($2.1 billion, 1.7 billion euros) last year on bumper sales.
After joint venturing with Novartis, GlaxoSmith would start a strategic review of Horlicks and other consumer nutrition products sparking another potential industry shake-up with a regional focus on India. GSK is likely to reduce attention from Merck’s asset, which relies heavily on sales of vitamins and dietary supplements in emerging market.
About Novartis
Novartis, headquartered in Basel, Switzerland provides innovative healthcare solutions that address the evolving needs of patients and societies. It innovative medicines, cost-saving generic and bio similar pharmaceuticals and eye care. With therapies that treat both front and back of the eye disorders, including retina diseases, glaucoma, dry eye and other external eye diseases, it leads in the world of Ophthalmology.