GlaxoSmithKline agrees sale of OTC brands to Aspen

GlaxoSmithKline has agreed the sale of a number of its non-core over-the-counter brands to Aspen Pharmacare Holdings for 164 million pounds.

Product lines such as Phillips MOM, Solpadeine, Dequadin, Cartia and Zantac will be divested to Aspen during the second quarter of 2012 as part of efforts to streamline its operations and improve shareholder value.

These brands generated sales of around 60 million pounds in 2011, with their sale expected to result in net cash proceeds in the vicinity of 135 million pounds, which will be returned to shareholders later this year.

To date, the total gross cash proceeds from GlaxoSmithKline's OTC brand divestment strategy comes to 981 million pounds, following agreements reached in December 2011 and March 2012.

Last month's transaction saw the firm sell Lactacyd, Abtei, Solpadeine and other products to Omega Pharma for 391 million pounds.

The company will also sell off its interest in the alli brand once a temporary third-party supply interruption is resolved.