GlaxoSmithKline sells off Classic Brands to Aspen

GlaxoSmithKline has continued the streamlining of its consumer health portfolio after agreeing a new divesture deal with Aspen Global Incorporated.

Under the terms of the agreement, GlaxoSmithKline will receive 172 million pounds in exchange for the majority of its Classic Brands – a group of 25 non-promoted and genericised products – in Australia.

This includes brands such as Valtrex, Lamictal, Timentin and Amoxil, which generated total sales of approximately 83 million pounds between them in 2011.

Revenues for these products have fallen over recent years due to local market price reductions and generic competition, with net profit from this transaction coming to around 121 million pounds after tax.

A statement from the company said: "Today's announcement is an example of GlaxoSmithKline's commitment to realise value and enhance returns to shareholders through the sale of low growth or non-core businesses and to focus on priority brands."

This comes after the company sold the rights to a number of additional products – including Phillips MOM, Solpadeine, Dequadin, Cartia and Zantac – to Aspen Pharmacare Holdings for 164 million pounds earlier this year.