Two giants in the pharmaceutical business are creating a joint venture focusing on the consumer end of their businesses.
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GlaxoSmithKline of the UK and Pfizer plan to combine their consumer health businesses with sales of $12.7 billion, into a company majority owned by the British company.
GSK says the deal laid the foundation for the creation of two new UK-based global companies focused on Pharmaceuticals/Vaccines and Consumer Healthcare.
The equity split works out this way, Glaxo 68 percent and Pfizer 32 percent.
“The combination of these leading businesses with distinct regional and category strengths will be more sustainable and broader in scope than either company individually,” said Albert Bourla, Chief Operating Officer and incoming Chief Executive Officer, Pfizer. “We believe that this joint venture is a great opportunity to ensure the future success of Pfizer Consumer Healthcare while unlocking meaningful after-tax value for Pfizer shareholders.”
Once the businesses are combined, GSK plans to separate the joint venture as an independent company.
The joint venture will be a leader in pain relief, respiratory, vitamin and mineral supplements, digestive health, skin health and will be the first or second largest consumer healthcare player in key geographies.
Emma Walmsley, GSK CEO, will be Chair of the new joint venture. Brian McNamara, currently CEO GSK Consumer Healthcare, will be CEO of the new joint venture and Tobias Hestler, currently CFO GSK Consumer Healthcare, will be CFO.