Glaxo, Pfizer to merge consume healthcare divis

DRUGMAKERS GLAXOSMITHKLINE, GSK, and Pfizer plan to merge their consumer health businesses into what will be the world leader in sales of nonprescription medicines such as pain relievers, vitamins and cold remedies.

The new joint venture would have combined annual sales of US$12.7 billion (£9.8 billion).

UK-based GSK will own 68 per cent of the venture, and New York-based Pfizer, the biggest US drugmaker, will own the remaining 32 per cent stake.

The business will sell products under GSK brands like Sensodyne toothpaste, Panadol pain tablets and Voltaren pain tablets and ointment, along with Pfizer’s Advil and Anbesol pain relievers, Chapstick, Centrum and Caltrate supplements, and Nexium heartburn treatment.

The companies said the joint venture will have a worldwide market share of 7.3 per cent, ahead of the nearest competitor at 4.1 per cent. It will have the No. 1 or No. 2 market share positions in key countries and regions, including the US, Europe, China and India, and in categories including pain relief, respiratory medicines, vitamins and supplements, and digestive health products.

The venture will operate under the GSK Consumer Healthcare name worldwide. The deal is expected to close in the second half of 2019, after which the two businesses will be integrated and packaging likely will be altered to add the GSK Consumer Healthcare name where needed.

Spokespeople for both GlaxoSmithKline and Pfizer on Wednesday said they couldn’t comment yet or had no information on changes consumers might see in the combined product line-up, whether product prices might be changed and whether the new business would be developing