New Delhi: Novartis India’s board on Tuesday approved the sale of its OTC division to GlaxoSmithKline Consumer Pvt Ltd, a consumer healthcare joint venture between Novartis AG and GSK, for a consideration of 109.7 crore.

The move follows a global deal struck in April last year, under which Swiss-based Novartis AG had agreed with UK-based GlaxoSmithKline Plc to create a global consumer healthcare joint venture, GlaxoSmithKline Consumer Private Ltd (GSK CPL), as part of its global portfolio transformation.

“The Board approved on January 13, 2015 the transfer of the OTC (Over-The-Counter) Division as a going concern by way of a slump sale to GSK CPL (or another affiliate of GSK) for a consideration of 1,097.3 million, on or before October 22, 2015," Novartis India Ltd said in a statement.

The transfer of the business is subject to the receipt of all applicable legal and regulatory approvals, consents, permissions and sanctions as may be necessary from concerned authorities, as well as closing of the global joint venture transaction between Novartis AG and GSK, it added.

“Factors considered by the board in its consideration of the OTC transaction included, but were not limited to, the prospects for the company’s OTC business in India following the divestment of Novartis AG’s global OTC business, including all of Novartis AG’s major OTC patents, trade-marks and R&D assets," it said. Novartis India shares closed at 672.40 apiece on the BSE, down 0.45% from the previous close.

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