GlaxoSmithKline to drop Alli and other OTC products
pharmafile | April 15, 2011 | News story | Research and Development, Sales and Marketing | Alli, GSK, OTC, Tyverb
GlaxoSmithKline is to sell off its weight loss drug Alli and other less profitable non-prescription drugs.
GSK announced its decision to divest during its full year financials in February, but has now listed the products it wishes to sell.
This includes its OTC weight loss drug Alli (orlistat) that was tipped to be a blockbuster at its launch in 2007, but failed to meet expectations.
GSK made just £203 million from Alli in 2009 and didn’t release figures on the drug in 2010.
Alli is a less potent OTC version of Roche’s prescription drug Xenical (orlistat).
Both forms of the drug have come under scrutiny for their safety profile, and in 2010 the FDA said both drugs should carry new warnings about the potential of severe liver injury.
OTC divestment
The products to be divested, which are primarily sold in Europe and the US, had sales in 2010 of approximately £500 million.
This represents around 10% of GSK’s total consumer healthcare turnover, and includes analgesics: Solpadeine, BC and Goody’s; vitamin and supplement product Abtei; and feminine hygiene treatment Lactacyd.
GSK said that individually the brands to be divested had a ‘strong heritage’ and good prospects, but the company has lacked ‘sufficient critical mass’ in some product categories.
GSK also added that certain brands have lacked focus due to other global priorities.
The company therefore believes that other firms are better placed to maximise the potential these products offer.
Following the divestment, GSK’s consumer healthcare business will focus on three priority categories.These are: oral health, wellness/OTC and nutrition, in which the company has fast-growing leading brands such as Sensodyne, Panadol and Horlicks.
The refocused business will attempt to hold top market positions in smoking control, denture care, dental sensitivity, analgesics, and nutrition.
GSK chief executive Andrew Witty said: “Consumer healthcare is a key growth driver for GSK. But it is important that we focus this business around product categories, brands and markets where we have most depth and competitive advantage, with the best prospects for strong growth.
“This divestment is also an example of our commitment to focus on realising value and enhancing returns to shareholders.”
GSK submits breast cancer drug to Europe
Meanwhile, GSK has also submitted a marketing application to the EMA for Tyverb (lapatinib), in combination with chemotherapy agent paclitaxel, for the treatment of patients with metastatic breast cancer whose tumours over-express HER2.
Ben Adams
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