GlaxoSmithKline plc (ADR) (GSK) Stock Is Heading Higher Today

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GlaxoSmithKline plc (ADR) (NYSE:GSK) shares were soaring Friday as the company announced that it is no longer in the running to buy some of Pfizer Inc.’s (NYSE:PFE) assets.

GlaxoSmithKline plc (ADR)(GSK)The company was considered to be the frontrunner to acquire Pfizer’s consumer health-care business in an auction that would’ve brought the latter company as much as $20 billion. It is unclear whether or not there were other offers for the business, which includes some popular products such as Advil and Centrum.

“While we will continue to review opportunities that may accelerate our strategy, they must meet our criteria for returns and not compromise our priorities for capital allocation,” GlaxoSmithKline CEO Emma Walmsley said in a statement.

Sources close to the matter said on Thursday that there might still be interest in Pfizer’s consumer health-care business, although the company could opt to avoid a sale altogether. The U.S. firm is consider potential alternatives for the sale, such as a spin-off, sale, other transaction or retaining it.

Pfizer is the fifth-largest player in the world in the consumer health sphere as it holds a 2.5% of the market that has been aided by aging populations and a growing interest in health and wellness.

GSK stock surged nearly 4.5% on Friday on the news as the announcement eased shareholders’ concerns of a potential dividend cut, while PFE stock slipped 1.4% by the day’s early afternoon.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/glaxosmithkline-plc-adr-gsk/.

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