trending Market Intelligence /marketintelligence/en/news-insights/trending/w8xls_qdemmz1pla0qjt7g2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Novartis sells stake in consumer health JV to GSK for $13B

COVID-19 Pandemic Likely To Cause US Telemedicine Boom

Gauging Supply Chain Risk In Volatile Times

S&P Global Market Intelligence

Cannabis: Hashing Out a Budding Industry

Segment

IFRS 9 Impairment How It Impacts Your Corporation And How We Can Help


Novartis sells stake in consumer health JV to GSK for $13B

Days after dropping its bid to acquire Pfizer Inc.'s $20 billion consumer healthcare unit, GlaxoSmithKline PLC agreed to buy Novartis AG's stake in the consumer health joint venture between the two drugmakers.

GSK will acquire Novartis' 36.5% stake in the JV for $13 billion in cash.

The venture was formed in 2015 as part of a strategic restructuring by Novartis, which holds the right to require GSK to buy its stake in the JV. GSK said buying out Novartis' stake removes uncertainty for its capital planning.

With full ownership of the unit, GSK Consumer Healthcare expects operating margins to approach mid-20s percentages by 2022 at 2017 CER. The deal is expected to be accretive to adjusted earnings beginning 2018, and is expected to strengthen operational cash flows.

GSK will also initiate a strategic review of Horlicks and its other consumer healthcare nutrition products to help fund the deal. The majority of sales for Horlicks and other nutrition products come from India, where they are sold by GlaxoSmithKline Consumer Healthcare Ltd. GSK will also review its 72.5% shareholding in the Indian company, and expects the strategic review to conclude by the end of 2018.

Novartis' CEO Vas Narasimhan said the company considers the consumer healthcare venture a noncore asset, and believes the sale will allow the company to focus on its core businesses.

All four of Novartis' directors from the 11-member joint JV board will step down following the completion of the deal.

The transaction is subject to approval from GSK's shareholders.