GlaxoSmithKline to shed OTC brands, including Alli, as US consumer group calls for the latter to be banned

Following up on a previously announced intention, UK pharma giant GlaxoSmithKline (LSE: GSK) says it has identified the non-core over-the-counter (OTC) medicines brands that it intends to divest as the company focuses its Consumer Healthcare business around a portfolio of fast-growing priority brands and the emerging markets.

The products to be divested, which are primarily sold in Europe and the USA, had sales in 2010 of approximately £500 million ($817.4 million), 10% of GSK’s total Consumer Healthcare turnover. They include analgesics: Solpadeine, BC and Goody’s; vitamin and supplement product Abtei; feminine hygiene treatment Lactacyd; and Alli (orlistat) for weight management.

The process of communicating with interested parties will begin over the next few weeks, with the aim of divesting the products by late 2011, subject to interest and realizing appropriate value for shareholders.