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GSK Pharma to transfer cancer drug portfolio to Novartis arm

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Press Trust of India New Delhi
Last Updated : Feb 12 2015 | 7:40 PM IST
GlaxoSmithKline Pharmaceuticals board today approved transfer of its cancer drugs portfolio to an arm of Novartis in India in return for acquiring vaccines portfolio as part of a global deal between the two-multinational pharma giants struck last year.
The company, which today reported a 61.24 per cent drop in its net profit at Rs 45.30 crore for the October-December period, said its board approved the transactions on an asset sale basis with Novartis Healthcare Pvt Ltd.
"Pursuant to the global deal, the company will have its distribution rights terminated for the oncology portfolio in return for accessing the distribution rights of the acquired vaccines portfolio," GlaxoSmithKline Pharmaceuticals Ltd said in a filing to the BSE.
The transaction would be profit neutral for the company, it added.
"The closing of the asset sales between the companies is subject to the receipt of all applicable legal and regulatory approvals, consent, permissions and sanctions as may be necessary from concerned authorities, as well as the closing of the global transactions between GSK and Novartis," the company said.
Last year, London-based GlaxoSmithKline Plc had entered into agreement with Basel-based Novartis AG to acquire the latter's vaccines business and manufacturing capabilities and sell the rights of its oncology portfolio, related R&D activities and AKT inhibitors currently in development to the Swiss firm.
In a separate filing, GlaxoSmithKline Pharmaceuticals said

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its board has decided to seek shareholder approval for appointment of seven independent directors and re-appointment and appointment of its whole-time directors.
The company's net sales rose to Rs 646.15 crore during the October-December period as against Rs 630.63 crore during the same period of the previous fiscal.
"The quarterly performance was impacted by supply constraints," the company said.
GlaxoSmithKline Pharma shares ended at Rs 3,254 apiece on the BSE, down 0.36 per cent from their previous close.

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First Published: Feb 12 2015 | 7:40 PM IST

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