Healthy outlook as GSK sells and buys

Source: Xinhua | 2018-12-04

British pharmaceutical group GlaxoSmithKline announced two multi-billion-dollar deals yesterday — the sale of its Asian health drinks unit to Anglo-Dutch food giant Unilever and the purchase of US cancer specialist Tesaro.

GSK said it is buying Tesaro for US$5.1 billion, while Unilever is spending US$3.7 billion to acquire the drinks unit.

“The acquisition of Tesaro will strengthen our pharmaceuticals business by accelerating the build of our oncology pipeline and commercial footprint, along with providing access to new scientific capabilities,” GSK Chief Executive Emma Walmsley said.

Unilever said its deal was for GSK’s business in India, Bangladesh and 20 other predominantly Asian markets, as it looks to profit from the increased popularity of health foods in high-growth emerging markets.

“GSK’s health drinks portfolio is the undisputed leader ... in India, with iconic brands such as Horlicks and Boost and a product portfolio supported by strong nutritional claims,” Unilever said.

Horlicks was introduced to India in the 1930s.

Tesaro Chief Executive Lonnie Moulder said the “transaction marks the beginning of a new global partnership that will accelerate our oncology business and allow our mission of delivering transformative products to individuals living with cancer.”