GlaxoSmithKline (LON:GSK) has completed the buyout of Novartis’ stake in their Consumer Healthcare joint venture, the London-listed pharmco has said. The companies announced the deal in March this year.
GSK’s share price has gained ground in London in today’s session, having added 0.43 percent to 1,530.60p as of 13:27 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.72 percent higher at 7,733.67 points. The pharmco’s shares have lost a little over 10 percent of their value over the past year, as compared with about a 2.5-percent rise in the Footsie.
GSK wraps up Consumer Healthcare deal
GSK announced in a statement today that it had completed the buyout of Novartis’ 36.5-percent stake in its Consumer Healthcare Joint Venture for $13 billion (£9.3 billion). The move came after shareholders okayed the deal on May 3.
The UK group unveiled the deal in March this year, explaining at the time that it addressed its key capital allocation priorities, supporting efforts to improve performance and capital planning. The blue-chip drugmaker further kicked off a review of its Horlicks business, saying that it expected to conclude it around the end of the year.
Today’s announcement comes after GSK recently inked a deal to divest its rare disease gene therapy portfolio to Orchard Therapeutics.
Analysts on blue-chip drugmaker
JPMorgan Chase & Co, which sees GSK as a ‘neutral,’ set a price target of 1,500p on the shares yesterday, while last week, UBS, which has a ‘buy’ rating on the blue-chip drugmaker, set a valuation of 1,600p on the stock. According to MarketBeat, the FTSE 100 group currently has a consensus ‘hold’ rating and an average price target of 1,547.14p.