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LONDON — GlaxoSmithKline PLC (GSK) has reversed a plan to possibly sell some of its established drugs in order to focus on fast-growing medications.
"The company has evaluated all bids received and has concluded, consistent with its key criteria of maximizing shareholder value, not to pursue divestment of these products," GSK said in a filing before the Securities and Exchange Commission.
In October, GSK said that it would sell older drugs by geographic region. Such companies as Denmark’s Lundbeck and India’s Lupin were listed as possible suitors.
Brands up for sale included the antidepressant Paxil, the stomach acid reducer Zantac and nausea fighter Zofran — drugs expected to have combined 2014 sales of around $1.6 billion. All three are also expected to encounter generic competition.
According to Reuters, GSK would retain rights for the drugs in emerging markets, making it unlikely that any bidders would walk away with the entire portfolio.
Last month GSK learned of a more enticing offer when private equity firm Apollo Global Management said it would bid on the company’s entire portfolio of drugs, Reuters said.
GSK’s decision not to sell its older products comes on the heels of corporate restructuring as the British-based pharmaceutical firm attempts to recover from disappointing sales for its asthma medication Advair. The company recently announced it would cut at least 900 sales and research jobs in the United States as part of a $1.6 billion downsizing initiative.
