Glaxo Keeps Alli As Recently Pruned Consumer Division Thrives
This article was originally published in The Tan Sheet
GlaxoSmithKline abandons its attempt to divest the OTC weight loss aid alli, even though the beleaguered brand continues to drag down consumer division sales. The division’s sales climbed 7% excluding alli in the firm’s second quarter, but only 5% including the product’s results.
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Brands returning to store shelves after an absence need to give a “provocative” reason for consumers to purchase the products again, according to an OTC marketing management consultant. The best reasons are product news, such as new formats, packaging innovations and positive pricing.
GlaxoSmithKline sells 19 OTC brands – worth about 1% of its consumer healthcare business – outside the U.S., Canada and Europe to South African firm Aspen Pharmacare. Weight-loss drug alli is GSK’s final remaining non-core OTC following the $263 million deal.
Omega Pharma will pay $619 million for GSK’s Lactacyd feminine wash products, Abtei supplements, Solpadeine analgesics, Zantac antacid, Nytol sleep aids and the allergy drug Beconase. The deal is part of Glaxo’s plan to simplify its consumer business by selling 19 OTC brands.