GSK closes the deal with Pfizer over $9.8 billion consumer healthcare merger
pharmafile | August 1, 2019 | News story | Sales and Marketing | GSK, Pfizer, merger, pharma
The $9.8 billion joint venture between major pharma firms GlaxoSmithKline and Pfizer to merge their consumer health operations has come to a close, forming the world’s largest over-the-counter business.
The deal sees GSK scoop up 68% equity in the new venture, with Pfizer taking the other 32%. The new entity will operate under the moniker of GSK Consumer Healthcare, and headed by CEO Brian McNamara. The move carves GSK’s business in two, with its main pharmaceutical and vaccine operations operating under the existing GlaxoSmithKline name, alongside the new entity.
The new venture will specialise in pain relief, respiratory and vitamins, minerals and supplements, and therapeutic oral health, according to Pfizer. Three members of the joint venture’s board – Group President and Chief Business Officer, John Young; Senior Vice President, Worldwide Business Development, Douglas Giordano; and Senior Vice President, Deputy General Counsel, Bryan Supran – have joined Pfizer at the company’s appointment.
The transaction is expected to deliver $650 million in peak cost synergies, as well as cut costs by around $600 million by 2020.
“The successful closing of the joint venture represents an important and exciting step in forming a world-class pure-play consumer healthcare business,” commented Albert Bourla, Chief Executive Officer at Pfizer. “It also furthers Pfizer’s evolution to be a more focused, global leader in science-based, innovative medicines that delivers breakthroughs that change patients’ lives and creates long-term value for shareholders.”
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