GlaxoSmithKline may put Horlicks up for sale to fund Novartis buyout
The British pharmaceutical company said it would continue to invest in brands like Eno and Sensodyne in India.
British pharmaceutical company GlaxoSmithKline plans to put up Horlicks for sale to fund a buyout of its $13 billion (Rs 84,660 crore) stake in a consumer healthcare joint venture with Novartis. GSK said on Tuesday it would begin a “strategic review” of the malted drink and other other consumer healthcare nutrition products.
GSK and Novartis had announced the joint venture in 2015, and GSK intends to buy out Novartis’ 36.5% stake in it. The company said the buyout will give GSK full control of products like Sensodyne toothpaste, Panadol headache tablets, muscle gel Voltaren, and Nicotinell patches.
“GSK expects the outcome of the strategic review to be concluded around the end of 2018,” the company press release said. “There can be no assurance that the review process will result in any transaction [of sale].”
However, the company said India was one of its biggest markets for Horlicks. GSK said it will continue to invest in brands like Sensodyne and Eno, and is also funding its pharmaceutical and vaccines business in India.