GSK commences sale of consumer healthcare brands

GlaxoSmithKline has launched the sale of some of its consumer healthcare brands in a bid to raise around £1 billion before the spinoff of its consumer healthcare arm. The non-core drugs have been put into three different portfolios to be sold to separate bidders according to multiple sources who requested to remain anonymous. Two portfolios consisting of Latin American drugs and Physiogel skin care products will be sold first, with a third portfolio of European drugs to be sold later this year. The three portfolios have a combined revenue of £200- £300 million per annum, with the European portfolio accounting for about 40% of combined sales.
GSK is preparing to fold its consumer business into a partnership with Pfizer later this year, and has plans within three years of closing the Pfizer deal to demerge and float the consumer health business. It will then split into two businesses, one focused on consumer, the other on pharmaceuticals and vaccines.