GlaxoSmithKline provides update on consumer healthcare streamlining

GlaxoSmithKline has provided an update on its efforts to streamline its consumer healthcare business unit by selling off a number of over-the-counter (OTC) brands.

The company has agreed to sell off the previously identified non-core OTC products, including BC, Goody's, Beano, Ecotrin and Tagamet, to Prestige Brands Holdings in North America for 426 million pounds.

However, it has yet to conclude its divestment of these brands outside the US and Canada and has also not yet identified a buyer for the Alli business, with all proceeds from the planned sales to be returned to shareholders.

The aim of the divesture is to create improved value for investors and simplify the company's consumer health business, allowing it to focus on its priority brands.

Among these will be leading names such as Sensodyne, Panadol and Horlicks, with priority categories including oral health, wellness and nutrition.

Simon Dingemans, chief financial officer for GlaxoSmithKline, said: "I am pleased that we have achieved such a good result for our US and Canadian assets, especially in such difficult market conditions."