GSK Sells 15 Consumer OTC Products to German Pharma Company STADA
Germany-based Stada acquired 15 well-established consumer health brands from GSK to strengthen its over-the-counter drug business throughout Europe.
Source: Thinkstock
By - Germany-based pharmaceutical company, Stada, announced it acquired 15 well-established local and regional consumer over-the-counter (OTC) products from GlaxoSmithKline (GSK).
The proposed transaction, expected to close at the end of this year, will further strengthen and expand Stada’s global OTC business in Europe and comes a year after Stada acquired five OTC skincare brands from GSK including Ceridal, Eurax, Oilatum, Polytar, Savlon, Tixylix pediatric cough remedies in Europe, and selected markets in Asia-Pacific regions and Latin America.
“As a broad-based European player with a strong presence in multiple markets, Stada is increasingly the Go-to-Partner in generics and consumer health,” Peter Goldschmidt, CEO of STADA said in the announcement.
GSK emphasized that the deal counted towards its target of 1 billion pounds, or $1.3 billion, of net proceeds from divestments of consumer products over the 2019-2020 period.
“The divestment signals the good progress we are making towards our target,” a GSK spokesperson said.
The countries in which the consumer OTC products are sold are predominantly located in Europe including France, Germany, Italy, Poland, Russia, Spain, and Switzerland. The transaction represents brands including Venoruton, for venous treatment, Coldrex, cold remedy, Cetebe Vitamin C supplements, Mebicaine sore throat range, and Tavegyl allergy brand.
The acquisition sales of the GSK Consumer Healthcare portfolio are distributed broadly. Germany, Russia, Poland, and Spain account for more than one-tenth of portfolio turnover, the announcement highlighted. And among the top ten countries by portfolio sales are France, Hungary, Italy, Portugal, Serbia, and Switzerland, which expands Stada’s position as a pan-European consumer healthcare player.
“We are delighted to be bringing 15 brands with strong local heritage, such as Venoruton, Coldrex, and Cetebe into the Stada portfolio,” said Steffen Wagner, head of Stada Europe. “This is an ideal transaction for both parties.”
Last month, GSK launched a two-year program to split the company in two, separating the core prescription drugs and vaccines business from the OTC products business.
It sold two travel vaccines to Bavarian Nordic for nearly €955 million in October 2019 and is hoping to strip more pharmaceutical assets in the future, starting with its prescription dermatology business with about 200-300 million pounds in annual sales.
“This recent acquisition will enable us to drive additional growth alongside our strong growth in the generics business. Under our ownership, we believe there is an excellent opportunity to revitalize and grow these consumer healthcare brands,” STADA’s Goldschmidt stated.
Neither company disclosed the financial details of the deal that is expected to close in the second quarter of 2020. Individuals close to the deal, however, have told national news sources that the acquisition is worth at least €300 million, or $325 million.
