GlaxoSmithKline Plc, the U.K.’s biggest drug maker, has no plans to spin off its consumer health-care division, a spokesman said today.
While the company won’t rule out the possibility of one day shedding the unit, it’s not currently being considered, said Simon Steel. The Financial Times reported the possibility of a spinoff yesterday.
Glaxo, which sells consumer brands such as Aquafresh toothpaste and Nicorette gum, is forming a joint venture with Novartis AG, to create a consumer health company with about 6.5 billion pounds ($11 billion) in annual revenue. Glaxo will have majority control of the new company. The transaction isn’t expected to close until next year.
“Our proposed deal with Novartis strengthens the value of our businesses and also delivers enhanced options for the long run,” Steel said in an e-mail. “There are no such plans to spin off the Consumer Healthcare business in the near term.”
Glaxo cut its full-year profit forecast on July 23 after second-quarter sales fell 4 percent at constant-exchange rates to 5.56 billion pounds.
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