GSK, Pfizer consumer deal

GLAXOSMITHKLINE has agreed to merge its consumer health business into a joint venture with Pfizer, as part of a plan which will eventually see the breakup of GSK into two separate entities.

Under the agreement GSK will hold 68% of the proposed joint venture alongside Pfizer’s 32%, with the combined business estimated to have annual global sales of US$9.8 billion.

GSK said within three years of settling the deal it intended to demerge the consumer operations through a stock market listing in London, leaving GSK itself with an exclusively prescription medicine portfolio.

“Ultimately our goal is to create two exceptional UK-based global companies.. .that are each well positioned to deliver improving returns to shareholders and significant benefits to patients and consumers,” said GSK CEO Emma Walmsley.

The companies said the planned joint venture would have a market share of 7.3%, ahead of rivals Bayer, Sanovi and Johnson & Johnson each of which hold about 4%.

GSK and Pfizer said the new consumer business would have a leading position in all key geographies including China and the United States.

Pfizer CEO Ian Read said the companies both had an excellent track record of creating successful collaborations “and we look forward to working again to unlock the potential of our combined consumer healthcare businesses”.