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news.Novartis India has agreed to transfer its over-the-counter division (OTC Division) to GlaxoSmithKline Consumer (GSK CPL), a consumer healthcare joint venture (JV) between Swiss pharmaceutical firm Novartis and GSK, for about INR1.097bn ($17.6m).
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The move follows a deal signed in April 2014, under which Novartis had agreed with GSK to create a global consumer healthcare JV as part of its global portfolio transformation.
In the new JV, GSK will have a controlling 63.5% equity interest, while Novartis will own a 36.5% share in it.
As stated in a filing with BSE India, the sale of Novartis’ OTC business in India follows the divestment of its global OTC business, including all of its major OTC patents, trade-marks and R&D assets.
The transfer of the OTC business is subject to the receipt of all applicable legal and regulatory approvals, consents, permissions and sanctions as may be necessary from concerned authorities, as well as closing of the global joint venture transaction.
In the multi-layered deal, Novartis has agreed to divest its Vaccines business (excluding flu business) to GSK for $7.1bn (including $5.25bn upfront and about $1.8bn in milestones) plus royalties.
The deal also included the acquisition of GSK’s oncology unit by Novartis for about $14.5bn and up to $1.5bn contingent on a development milestone.
Image: Novartis headquarters in Basel Switzerland. Photo: courtesy of Andrew.