Glaxo is selling off its consumer products business unit as a separate company
… GlaxoSmithKline is selling its consumer products division …

GlaxoSmithKline Divesting Consumer Products Business Unit

Another global healthcare enterprise opts for the spinoff strategy to generate cash and streamline operations

John G. Baresky

Strategic corporate divestitures increasingly popular lately in the healthcare industry

Large-scale business maneuvers like mergers and acquisitions or spinoffs are nothing new in the healthcare industry. Lately, divestitures have risen in popularity as it quickly enables enterprises to offload non-strategic assets and use the proceeds in a variety of ways. They include:

  • Retiring debt
  • Investing in research & development
  • Acquiring other organizations complimentary to their latest business model and strategy

Merck initiates the sale of a business and the creation of a spinoff company

Early in 2020 Merck’s CEO Kenneth Frazier announced plans for the company to sell off several product portfolios to form a new standalone company. The new spinoff organization, known as Organon, is made up of:

  • Biosimilars
  • Legacy products

Walgreens Boots Alliance sells off a majority stake in a global wholesale business

Early in 2021, Walgreens Boots Alliance (NASDAQ: WBA) sold off most of its ownership in Alliance Healthcare for about $6.2 billion to AmerisourceBergen (NYSE: ABC).

Becton Dickinson exiting diabetes care by divestiture strategy

During the second quarter of 2021 Franklin Lakes, New Jersey-based Becton Dickinson (NYSE: BDX) communicated that it is largely leaving the diabetes care business sector. Becton Dickinson plans to assemble these products into a new freestanding healthcare products company:

  • Insulin syringes
  • Pen needles
  • Sharps containers for home use
  • Support products and supplies for self-injection

GSK is a formidable global healthcare leader

Founded in 2000 through a merger combining two companies, Glaxo and SmithKline, GSK generated about $43 billion in global sales during 2020. GSK is based in Brentford, UK with significant corporate and research facilities in Philadelphia, Pennsylvania and Research Triangle Park, North Carolina.

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