) announced that it has completed the divestment of its
thrombosis brands, Arixtra and Fraxiparine and nutritional drinks
brands Lucozade and Ribena.
We remind investors that in Sep 2013, Glaxo had entered into an
agreement with a South African pharma company, Aspen Group, to
divest the above mentioned thrombosis products and the related
manufacturing site at the Notre-Dame de Bondeville for £700
million. Glaxo has already transferred majority of the assets
related to Arixtra and Fraxiparine, while the remaining assets
along with the manufacturing site will be transferred in
Additionally, Glaxo also divested its nutritional drinks brands,
Lucozade and Ribena to a Japanese consumer goods company, Suntory
Beverage & Food Ltd., for £1.35 billion.
We believe the deals are in line with Glaxo's long-term strategy.
Glaxo has been streamlining its Consumer Healthcare business
segment for some time now.
Earlier, Glaxo divested its non-core Consumer Healthcare
over-the-counter (OTC) products primarily in the U.S. and Europe.
Total annual sales of these products amounted to approximately
£500 million. Glaxo divested these products with the intention of
channeling its focus on priority brands and markets.
Meanwhile, Glaxo has given back its rights to migalastat HCl to
Amicus Therapeutics, Inc.
) in Nov 2013. Glaxo also divested a portion of its holding in
Aspen Pharmacare Holdings Limited. We believe that Glaxo will
work on streamlining its operations further.
Glaxo carries a Zacks Rank #3 (Hold). Some better-ranked stocks
Forest Laboratories Inc.
Lannett Company, Inc.
). Both carry a Zacks Rank #1 (Strong Buy).
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