19 December, 2018 – The British pharmaceutical company, GlaxoSmithKline (GSK) and the American pharmaceutical company, Pfizer, announced the union of their Consumer Healthcare areas to create a joint venture that will allow them to become the largest company in consumer healthcare with sells up to $12.7 billion dollars.
With this transaction both companies will become the largest supplier of non-prescription medicines, such as Advil and Panadol. Under the terms of the transaction, GSK will hold a 68% stake and Pfizer the remaining 32%.
“The transaction is a testament to the success of our Consumer Healthcare business, including its excellent reputation, talented colleagues, high-quality products and market reach,” said Chris Slager, President of Pfizer Consumer Healthcare.
The deal is expected to close in the second half of 2019 and will operate under the name of GSK Consumer Healthcare. Its president will be Emma Walmsley, CEO of GSK, who said “There are benefits to having a broader structure but these are significantly outweighed by the value creation of the deal we are announcing today”. Brian McNamara, GSK CEO of the Consumer Healthcare division, and their CFO, Tobias Hestler, will also be managing the joint company.
This agreement will allow the introduction of a new production strategy, for it will allow one of the companies to focus on the production of vaccines and medicines, and the other company to focus on the consumer healthcare.