Please ensure Javascript is enabled for purposes of website accessibility

GlaxoSmithKline Reportedly Trying Again to Sell Antibiotics Line

By Eric Volkman - Mar 3, 2020 at 4:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The divestment of its cephalosporin products could bring in several hundred million dollars.

GlaxoSmithKline (GSK -0.44%) is hanging a "for sale" sign on a group of its antibiotics, according to an article published by Bloomberg. The article, citing "people familiar with the matter," states that the big drugmaker is working with financial advisors to find a buyer for its line of cephalosporins, a type of antibiotics, in a move that could put several hundred million dollars into the company's coffers.

Glaxo and its advisors are testing the waters for such a sale, Bloomberg wrote, making preliminary inquiries of interest. Early targets are peer pharmaceutical companies active in the antibiotics segment, as well as investment funds.

GlaxoSmithKline building in the U.K.

Image source: GlaxoSmithKline

The company's portfolio of cephalosporins includes the drugs Zinna and Fortum, which collectively bring in roughly $200 million in annual revenue. Glaxo unsuccessfully attempted to sell this line several years ago. 

Glaxo is a company in the process of transformation. It has combined its consumer healthcare business with that of Pfizer (PFE 2.15%)in a joint venture, and it is attempting to position itself for the future by divesting legacy medications like the cephalosporins in favor of more cutting-edge treatments.

A powerhouse in the vaccines segment, Glaxo is also developing next-generation products in this area. It has, for example, fast-tracked development of vaccine candidates for the SARS CoV-2 coronavirus that causes COVID-19. At present, there are no effective vaccines for SARS-CoV-2, nor have any treatments been clinically confirmed to be effective against COVID-19.

Glaxo has not officially commented on the Bloomberg report. On Tuesday, the pharmaceutical giant's stock had slipped by almost 3% in mid-afternoon trading, essentially in parallel to the decline of the broader U.S. market.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GSK Stock Quote
$43.11 (-0.44%) $0.19
Pfizer Inc. Stock Quote
Pfizer Inc.
$52.75 (2.15%) $1.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.