GSK reverses course, retracts plan to sell older drugs
- In mid-November, GlaxoSmithKline announced plans to sell its mature portfolio of drugs, including Paxil, Imitrex, Zantac, and Zofran.
- Bidders were said to include Apollo Management, KKR, Lundbeck, and Norgin.
- On Thursday, GSK announced that the deal was off because none of the bids was sufficient to "maximize shareholder value."
GSK's goal in putting its portfolio of older drugs on the market was to enhance long-term growth potential and reduce complexity—creating a more focused portfolio as a result.
A potential deal was estimated to be in the $3 billion range. Evidently, Glaxo wasn't seeing the kind of offers that it wanted. And given the rather tumultuous year that the company has had to grind through, including a record fine and falling Advair sales which are leading to a slate of massive job cuts in the U.S., GSK is clearly looking to get every penny that it can.