AstraZeneca to Divest Nordic Over-the-Counter Portfolio
AstraZeneca has announced the divestment to GlaxoSmithKline of a portfolio of over-the-counter (OTC) products predominantly sold in Sweden. The decision reinforces AstraZeneca's strategy to focus on innovation in prescription medicines.
Under the agreement, AstraZeneca will receive $253 million (SEK 1770 million) for the OTC brands, which include analgesics Alvedon and Reliv, Nezeril/Nasin for decongestion, Minifom for gastrointestinal disorder and Duroferon for treatment of iron deficiency. Sales for the OTC portfolio were approximately $48 million (SEK 335 million) in 2007, with the majority of sales concentrated in Sweden.
The transaction is conditional upon the Swedish Competition Authority's approval, which is not anticipated to be received until the first quarter of 2009.
