GlaxoSmithKline is to sell off several over-the-counter brands, including weight-management drug Alli, as part of efforts to streamline its Consumer Healthcare business
GlaxoSmithKline (GSK) is to sell off several over-the-counter brands, including weight-management drug Alli, as part of efforts to streamline its Consumer Healthcare business.
The company said the products it intends to divest had sales of around £500m for 2010 - around 10 per cent of total turnover for GSK's Consumer Healthcare division for the year.
Other GSK brands to be sold off include the painkillers Solpadeine, BC and Goody's; vitamin supplement Abtei; and Lactacyd for feminine hygiene.
In a statement, GSK said the lines lack 'sufficient critical mass' with the company looking to focus on leading brands such as Sensodyne, Panadol and Horlicks over its three priority categories in its Consumer Healthcare division – oral health, wellness/OTC and Nutrition.
"Consumer Healthcare is a key growth driver for GSK," said Andrew Witty, CEO of 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."
Product divestment is intended to happen by late 2011, with GSK to talk to interested parties over the next few weeks.