GlaxoSmithKline abandons plans to divest Established Products portfolio

In what has come as something of a surprise, UK pharma major GlaxoSmithKline (LSE: GSK) has abandoned its plan to divest certain North American and European brands in its Established Products portfolio.

Along with its second quarter results announcement in July, GSK said it had started the process to divest the brands. However, the company says it has now evaluated all bids received and has concluded, consistent with its key criteria of maximizing shareholder value, not to pursue divestment of these products.

The portfolio of drugs has forecast 2014 sales of about £1 billion ($1.57 billion), and includes brands such as Imitrex, a migraine treatment, Zofran, a nausea remedy, gastrointestinal drug Tagamet, and Seroxat, an antidepressant.