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 "The company has evaluated all bids received and has concluded,
consistent with its key criteria of maximising shareholder value,
not to pursue divestment of these products," it said in a statement.
A spokesman for GSK, which was being advised on the disposal by
Lazard, declined to give any more details.
People familiar with the situation said last month that several
private equity firms and smaller drug companies were looking at the
assets on the block, which had been expected to sell for more than
$3 billion.
Bidders, who had been hoping to clinch a deal before the end of the
year, included Apollo Global Management, Denmark's Lundbeck, and KKR,
which teamed up with private Dutch-based specialty drugmaker Norgine,
sources said.
The disposal of the older prescription drugs was one of several
moves by Britain's biggest drugmaker to improve its long-term growth
profile and reduce complexity.
Some analysts, however, had questioned the timing of the sale since
GSK is struggling with stagnant overall sales, putting pressure on
its dividend, and divesting the mature drugs would have hit earnings
in the short term.
A number of large drugmakers have weighed similar plans to hive off
older products, with mixed results. Sanofi ditched the idea of
selling its mature drugs this year after the idea was opposed by the
board, an episode that contributed to the downfall of its CEO.
The drugs that GSK put on the block, known as established products,
are expected to have combined 2014 sales of around 1 billion
pounds($1.6 billion) but their sales are in long-term decline due to
competition from cheaper generics.
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They included antidepressant Paxil, migraine treatment Imitrex,
Zantac for stomach acid and Zofran for nausea. The company always
intended to retain the rights to such products in emerging markets,
where they are still growing.
GSK Chief Executive Andrew Witty, who plans to close a major
asset-swap deal with Novartis next year, is under pressure to
deliver value to investors after a period of lacklustre performance.
He put a floor under the company's dividend in October by pegging
the 2015 payout to the 2014 level and aims to save 1 billion pounds
in annual costs over three years, resulting in job losses.
(Editing by Jane Merriman)
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