Britain's GSK exits U.S. drugmaker Innoviva in $392 million deal (updated)

Innoviva

20/05/2021 15:43

(Adds details on stake sale, background on GSK, share movement)
    May 20 (Reuters) - GlaxoSmithKline  GSK.L  has sold its
entire stake in Innoviva  INVA.O  back to the U.S.-based
biopharmaceutical company for about $392 million, the British
drugmaker said on Thursday, as it simplifies operations ahead of
a split into two businesses.
    The London-listed company said it sold roughly 32 million
shares in the Nasdaq-listed Innoviva for $12.25 per share, a
marginal discount to the stock's closing price of $12.29 on
Wednesday. 
    GSK will give details in June on its plan to separate next
year into an over-the-counter products business and another for
prescription drugs and vaccines. Preparations have hurt
earnings, but the company hopes the streamlining will pay off in
the long term.
    Shares of GSK were 0.3% lower at 1,361.3 pence by 1427 GMT,
while Innoviva gained 5.1% to about $13. 
    An existing collaboration between the companies on
respiratory treatments is not affected by the share sale, GSK
said, adding the disposal frees up capital to help make more
investments in line with its strategic priorities.
    Under the respiratory deal, GSK pays royalties to Innoviva
on lung drugs Trelegy Ellipta, Relvar/Breo Ellipta and Anoro
Ellipta that the companies co-developed. 


 (Reporting by Pushkala Aripaka in Bengaluru; Editing by Sriraj
Kalluvila)
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