Updated on 16 March 2015
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Singapore: GlaxoSmithKline recently sold half its stake in South Africa's largest drugmaker Aspen Pharmacare Holdings for a discount price of $851 million. GSK sold about 28.2 million shares representing about 6.2 percent of the company's issued share capital, said Aspen in a statement.
According to reports, GSK is reorganizing and revamping its processes amid a slump in sales, as its blockbuster Asthma drug Advair faces increased competition in the US. The company recently completed a deal with Novartis AG to sell its oncology franchise and acquire the Swiss drugmaker's vaccines business.
Mr Simon Dingemans, CFO, GSK said in a statement that the deal will help the company by giving capital when it is restructuring operations through an asset swap with Novartis. GSK also agreed not to sell off any additional shares in Aspen for at least 180 days, except for undisclosed "limited exceptions."
Aspen said that its board will retain GSK's chief strategy officer, Mr David Redfern, who recently joined Aspen's board as GSK nominee-director, succeeding Mr Abbas Hussain.