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GlaxoSmithKline To Set Out Guidance When It Reports On May 6

Mon, 2nd Mar 2015 07:20

LONDON (Alliance News) - GlaxoSmithKline PLC Monday said it will set out its 2015 earnings guidance and longer-term prospects when it reports its first quarter results on May 6, after it completed its three-part deal with Novartis and reiterated that it will return GBP4 billion of the proceeds from the deal to shareholders.

The drugs giant has bought Novartis's global Vaccines business, excluding flu vaccines, for an initial cash consideration of USD5.25 billion, has created a consumer healthcare joint venture with the Swiss company in which Glaxo will have majority control and an equity interest of 63.5%, and has divested its oncology business to Novartis for an aggregate cash consideration of USD16 billion.

Glaxo expects to receive net after tax proceeds of about USD7.8 billion on Monday, although it may have to return up to USD1.5 billion of the oncology business purchase price if certain conditions relating to the COMBI-d Trial are not met.

"Following the positive results from this study announced on 6 February 2015, GSK believes these conditions will be satisfied," it said.

The capital return is expected to be implemented through a B share scheme, which will provide capital treatment for all UK tax-resident shareholders. Further details on the capital return will be sent to shareholders in due course, Glaxo said.

"We will now be focused on rapidly implementing our integration plans to realise the growth and synergy opportunities we see in the new Consumer Healthcare and Vaccines businesses. We look forward to sharing more details of this with our shareholders on 6 May," Glaxo Chief Executive Andrew Witty said.

Glaxo reported its 2014 results last month, and would normally have given 2015 guidance at that time. However, it said it was waiting to complete the Novartis deal before giving guidance this year.

By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1

Copyright 2015 Alliance News Limited. All Rights Reserved.

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