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GSK Gains Clarity For Pharma Focus Through Novartis Consumer JV Buy

 
• By Mandy Jackson

GSK removed some uncertainty about how much it could invest in pharma R&D and business development by purchasing Novartis' share of the firms' Consumer Healthcare Joint Venture. Now it can more accurately allocate capital as it prepares for battle in HIV and braces for Advair generics.

Machinery cogwheels, industry concept

It's hard to imagine that spending $13bn (£9.2bn) could lift a weight from someone's shoulders, but that's what GlaxoSmithKline PLC has done with its purchase of Novartis AG's 36.5% stake in the companies' Consumer Healthcare Joint Venture.

GSK said on March 27 that buying Novartis' share of the JV, which became a possibility this month under the companies' 2014 agreement to combine their OTC drug and nutritional products businesses, "removes this uncertainty and improves the Group’s ability to plan allocation of capital to its other priorities

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