The products being bid for include over the counter painkillers and vitamin supplements. These sales are the product of GSK’s reduction of non-core products announced in February, representing 10% of the consumer healthcare business. Bids for the products are expected on 8th August, but will be negotiable. CEO Andrew Witty expects the deals to close in the fourth quarter of 2011 before adding that GSK will be looking for the best deal for shareholders to benefit.
Rival companies are unlikely to bid for all the products GSK is looking to offload, worth a maximum of around £2 billion. However because the products will not be sold as a single body, analysts believe that GSK will not be able to make that amount. The lack of coherence in the products on sale, other than, as one analyst says “stuff that GSK doesn’t want,” also means it will be difficult to sell the portfolio for such an amount in one go.
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