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Novartis India to sell OTC business to GSK Consumer for Rs 109 crore

14 Jan 2015 Evaluate

Novartis is all set to offload its Over-The-Counter Division (OTC Division) of Indian arm to GlaxoSmithKline Consumer, Indian entity of UK-based GlaxoSmithKline, under the agreement for business transferring between Novartis and GlaxoSmithKline signed last year.

On January 13, 2015, the company’s board approved the transfer of the OTC Division as a going concern by way of a ‘slump sale’ to GSK CPL (affiliate of GSK) for a consideration of Rs 109.7 crore, on or before 22 October 2015, as well as closing of the global Joint Venture transaction between Novartis AG and GS.

As part of its global portfolio transformation, Novartis AG, agreed with GlaxoSmithKline plc, UK on 22 April 2014 to create a global consumer healthcare joint venture. In the joint venture, GSK will own 63.5% stake while Novartis would own the remaining 36.5% holding.

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