Reckitt Benckiser to spin out pharma; GSK views Consumer options

UK-based consumer goods giant Reckitt Benckiser (LSE: RB) plans to spin off its USA-based pharmaceutical business, the company announced along with its half-year 2014 financial results.

Reckitt Benckiser's chief executive Rakesh Kapoor said: "We believe that RB Pharmaceuticals has the potential to deliver significant long-term value creation as a stand-alone business. We have therefore decided to pursue a demerger of RB Pharmaceuticals with a separate UK listing. We expect this to take place over the next 12 months. This will also allow RB to focus on its core strategy to be a global leader in consumer health and hygiene.”

The decision to spin off the pharmaceuticals division, which now accounts for 7% of revenues, came as the company announced a 4% rise in like-for-like sales in the first half of 2014, excluding its best-selling opioid dependency product Suboxone (buprenorphine and naloxone sublingual tablets [CIII]) business. Profits have risen 16% to just over £1 billion.