GlaxoSmithKline‘s (NYSE:GSK) efforts to clear its figurative medicine cabinet of unwanted over-the-counter products continues as the pharma giant reaches a deal to sell a group of consumer brands to Aspen Pharmacare Holdings for $263 million in cash.
Brands being sold include constipation reliever Phillips Milk of Magnesia, fever and pain reliever Solpadeine and heartburn product Zantac. The sale to South Africa-based Aspen is expected to be completed later in the second quarter and is pending regulatory approvals. Aspen sells branded and generic pharmaceuticals in approximately 100 countries worldwide.
Britain-based GSK, which has its U.S. headquarters in Research Triangle Park, North Carolina, announced plans last year to streamline its consumer healthcare products division. While the company said it would maintain certain OTC products, such as sensitive teeth toothpaste Sensodyne, the company would divest “noncore” products.
Last December, GSK sold North American rights to 17 OTC products to Irvington, New York-based Prestige Brands Holdings (NYSE:PBH) for $660 million. In March, GSK announced a deal to sell certain European OTC rights to Omega Pharma for more than $618 million. Most of the Prestige deal closed in January, with the remaining portion completed this month. The sale to Omega is expected to close later this quarter.
None of the deals include GSK weight loss product alli. Alli sales have slumped since the U.S. Food and Drug Administration in 2009 looked into alli for possible liver damage associated with the product. The inquiry led to a label change noting potential health risks. Slower sales and higher health risks could be scaring off buyers. But GSK said that the alli’s sale process has been delayed by a third-party supply interruption. GSK said today that supply interruption is still being resolved.
[Photo from flickr user dno1967b]