GSK to sell $392M of Innovia stock, says it will invest in strategic priorities

RESEARCH TRIANGLE PARK – GlaxoSmithKline has agreed with Innovia, Inc, a royalty management company, to sell all of GSK’s approximately 32 million shares of Innovia common stock back to Innovia at a price of $12.25 per share, totaling about $392 million.

After the transaction, GlaxoSmithKline will no longer hold any quantity of Innovia stock. The sale of stock will allow GSK to invest in what it called “the Group’s strategic priorities” in a press statement.

The collaboration between the two firms will continue, and under that agreement, GSK pays royalties to Innovia for a variety of products.

“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,” Reuters reported. “Preparations have hurt earnings, but the company hopes the streamlining will pay off in the long term.”

GSK maintains a significant operation in the Triangle, including a manufacturing plant in Zebulon.

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