GSK to buy Roche OTC business for L1 billion?

Unconfirmed reports in the past week have suggested that Swiss drug major Roche is in talks with UK-based GlaxoSmithKline, and perhaps other companies such as Bayer Healthcare, for the sale of its over-the-counter operations for around L1 billion ($1.28 billion).

Roche's OTC sales, which include brands such as Berocca, Elevit and Supradyn, reached 1.8 billion Swiss francs ($1.47 billion), up 17% on the previous year and helped by the firm's acquisition of Japanese drugmaker Chugai, which has a strong position in this sector.

The Sunday Times said that Roche, which last year pulled out of the vitamins business (Marketletters passim), "is reviewing the future of its consumer health arm as it increases its focus on prescription drugs." It adds that others possibly interested in acquiring the Roche OTC business include Germany's Bayer and private equity investors.