UK: GSK and Pfizer to combine into drug giant

GlaxoSmithKline and Pfizer announced they would combine their consumer health businesses in a joint venture with sales of £9.8 billion (US$12.7 billion), majority owned by the British company.

GSK stated on Wednesday, December 19, the deal laid the foundation for the creation of two new UK-based global companies focused on pharmaceuticals/vaccines and consumer healthcare.

Glaxo will hold a 68% stake and Pfizer the remaining 32% in the new joint venture, which generated combined sales of US$12.7 billion last year and will be the world’s largest over-the-counter medicines business. It also will sell brands like nicotine replacement gum Nicorette, heartburn tablets Tums, and Centrum multivitamins.

The British company stated it expects to close the deal in the second half of 2019 and then separate the joint venture within three years via a listing on the UK stock market.

That planned move will represent a breakup of Glaxo, which currently generates around a quarter of its revenue from such consumer products. For Pfizer, consumer health represents a smaller slice of its overall business, at around 7% of total revenue.

Full Content: Wall Street Journal

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