Glaxo Divests Certain Assets - Analyst Blog

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GlaxoSmithKline ( GSK ) 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 mid-2014.

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. ( FOLD ) 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 include Forest Laboratories Inc. ( FRX ) and Lannett Company, Inc. ( LCI ). Both carry a Zacks Rank #1 (Strong Buy).



AMICUS THERAPT (FOLD): Free Stock Analysis Report

FOREST LABS A (FRX): Free Stock Analysis Report

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LANNETT INC (LCI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: FOLD , FRX , GSK , LCI

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