GSK chairman confirms interest in Pfizer's otc business

GlaxoSmithKline's chairman has confirmed that Europe's biggest drugmaker is interested in buying the consumer healthcare business of US rival Pfizer 'at the right price'.

"The over-the-counter (otc) business is an important part of GSK ... It's been doing well for us, and we'd like to expand, although obviously at the right price, rather than just for the sake of expansion," Chris Gent said.

"The Pfizer properties are interesting, and we are an interested party, but I don't want to say any more than that," Gent told Reuters before giving a speech at a Confederation of British Industry conference.

People familiar with the situation said last Friday that Glaxo was ready to bid more than US$15bn for the business, which includes brands such as Listerine mouthwash, Sudafed decongestant and Rolaids antacid.

The acquisition would make the British-based group the world's largest supplier of otc, or non-prescription, medicines, and its offer is expected to be among the highest.

The other two frontrunners in the auction are believed to be Johnson & Johnson and Reckitt Benckiser. Bidding for the unit closed on Tuesday and J&J had been planning to bid closer to $14 bn, sources said - at which price the consumer healthcare business would be valued at about 3.6 times 2005 sales, or on par with the multiple paid by Reckitt for Boots Healthcare International last year.

Pfizer chief executive Hank McKinnell said the company had received some "very strong bids" and the group was now studying what to do.