Sector News

Novartis in no rush to sell down stake on GSK consumer venture

July 20, 2016
Life sciences

Novartis is happy with the performance of its consumer health joint venture with GlaxoSmithKline, in which the Swiss drugmaker has a minority stake, and is in no rush to exit the collaboration early, its chief executive said.

There has been speculation that Novartis might look to try and sell its 36.5 percent holding before an agreed trigger date of 2018, but Joe Jimenez played down the idea in a post-results call with analysts on Tuesday.

He noted the consumer business was doing well, with profit margins now improving, suggesting a bright outlook for the business.

“There’s a put (option) in 2018 but as long as there’s value that’s going to continue to be generated here, we are happy to participate in it,” Jimenez said.

Some analysts have suggested that Novartis could use funds from selling its stake to help pay for any acquisitions, including in the hot area of cancer immunotherapy. Jimenez, however, said he did not feel any pressure to do deals in the immunotherapy field as Novartis had a promising early-stage pipeline of immune system-boosting medicines.

On the broader M&A front, Jimenez reiterated that Novartis had the flexibility to see its credit rating move down for the right deal, although he said the current focus was on smaller bolt-on acquisitions.

By Ben Hirschler

Source: Reuters

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach