Deals
Glaxo’s Best ‘Headache’ Remedy May Be Buying Stakes in Ventures
The drugmaker's profit has been declining as its best-selling Advair faces more competition
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Two of GlaxoSmithKline’s most promising businesses—its joint ventures in HIV drugs and consumer health—harbor both a threat and an opportunity, with a price tag in the billions.
The minority owners of the units—Pfizer, Shionogi, and Novartis—can force Glaxo to buy them out by exercising so-called put options. Bracing for that possibility is limiting Glaxo’s payouts to shareholders and could impede its ability to grow.