Swiss pharmaceutical company Novartis (NVS, NOVN.VTX) has agreed to sell its stake in its consumer health care joint venture to GlaxoSmithKline (GSK.L, GSK) for $13 billion as it seeks to focus on strategic priorities.
The deal sees Basel-headquartered Novartis divesting a 36.5% interest in the joint venture, which was formed in 2015 as part of Novartis’ portfolio transformation, as the company aims to focus on the development and growth of its core businesses.
“While our consumer healthcare joint venture with GSK is progressing well, the time is right for Novartis to divest a non-core asset at an attractive price,” Vas Narasimhan, chief executive of Novartis, said. “This will strengthen our ability to allocate capital to grow our core businesses, drive shareholder returns, and execute value creating bolt-on acquisitions as we continue to build the leading medicines company, powered by digital and data.”
The transaction, which is subject to shareholder approval at GlaxoSmithKline, is expected to be completed in the second quarter of 2018.