Glaxosmithkline Reportedly Trying To Sell Some Of Its Antibiotics Portfolio

At its early-February annual report, UK’s GlaxoSmithKline outlined its plans to divide the company into two entities. One part will focus on pharmaceuticals and drug development; the other will focus on consumer healthcare. As part of that plan, it is divesting some assets to raise funds to focus elsewhere and to streamline parts of the two businesses.

The company is now indicating plans to once again sell part of its antibiotics business. Specifically, it is looking to divest itself of cephalosporins, including Zinnat and Fortum brands. This portfolio of products would likely bring in several hundred million dollars, according to sources, reported Bloomberg.

The drugs in question bring in about $200 million annually. The company has reportedly reached out to potential buyers including other antibiotic manufacturers and investment funds. GlaxoSmithKline tried to sell the antibiotic products in 2018.

The two new companies will include GSK, which will focus on research and development, particularly immunology, genetics and leveraging new technologies. The second is the consumer healthcare business. GSK is also developing a consumer health joint venture with Pfizer.

In February, GSK announced plans to sell 15 of its consumer healthcare products to Frankfurt, Germany-based generic drugmaker Stada for more than $325 million. GSK is combining its over-the-counter (OTC) products division with Pfizer. Stada wants to expand its portfolio of smaller, national products.

Stada acquired venous treatment Venoruton, Coldrex for colds, Cetebe vitamin C supplements, Mebucaine for  sore throats and Tavegyl for allergies, among others. The products are sold in more than 40 countries, including Germany, Russia, Poland and Spain.

GSK is attempting to raise $1.3 billion by divesting some of its consumer products. At the time of the Stada deal, a company spokesperson said, “This divestment signals the good progress we are making towards our target.”

Stada is majority owned by private equity firms Bain and Cinvent.

In October 2019, GSK divested two travel vaccine, Rabipur and Encepur, to Bavarian Nordic for up to 955 million euros. GSK gained those two drugs in a $20 billion asset swap with Novartis in 2015. That was part of a three-way deal where GSK acquired Novartis’s vaccines business, excluding influenza vaccines, the development of a consumer healthcare joint venture, and the sale of GSK’s oncology portfolio related to R&D activities and rights to two AKT inhibitors to Novartis. It is also looking to divest more pharmaceutical assets by reviewing its prescription dermatology business, which brings in about 200 to 300 million British pounds in annual sales.

In many ways, GlaxoSmithKline’s chief executive officer Emma Walmsley has been trying to refill the hole in the company’s portfolio of cancer drugs since she took over the company.

It also announced it was selling its skin-care brand Physiogel to LG Household & Healthcare for 125 million pounds. The deal was for the Physiogel business in Asia and North America. These products originated in Germany and are marketed in Asia, Eruope and South America.

GSK also has other antibiotics assets, including Augmentin and gepotidacin, which is a pipeline product for gonorrhea and urinary tract infections that began late-stage clinical trials at the end of 2019.

Just last week, GSK announced that both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) had accepted the company’s supplemental New Drug Application (sNDA) for Zejula (niraparib) as maintenance treatment in the first-line setting for women with advanced ovarian cancer who responded to platinum-based chemotherapy regardless of biomarker status.-Bio Space