Cloud over GlaxoSmithKline deal affects outlook; stock down by 8.3%

Final value of transaction hinges on whether distribution arrangement is part of deal

The GlaxoSmithKline Consumer Healthcare (Glaxo Consumer) stock was down 8.3 per cent after its parent announced a strategic review of the company’s Horlicks brand and other consumer nutrition products, including an assessment of its 72.45 per cent stake in the company.

The company, however, didn’t divulge further details of the review that would be completed by the end of 2018. But, the firm is planning to sell its consumer healthcare nutrition brands, including Horlicks, to fund the buyout of Novartis’ 36.5 per cent stake in the global consumer healthcare joint venture.

According to Kaustubh Pawaskar of Sharekhan, lack of clarity