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GlaxoSmithKline and Pfizer, the two of the biggest pharmaceutical companies, has announced a merger of their consumer healthcare units that produce over-the-counter medicines. GSK informed that it would have a 68-per cent controlling equity interest in the GSK Consumer Healthcare joint venture.
The combined sales of Joint Venture is about 9.8 billion pounds ($12.7 billion, 10.9 billion euros). The tie-up is expected to become a global leader in OTC products with a market share of 7.3 per cent. GSK has predicted that the annual cost savings by 2022 should reach 500 million pounds.
In a statement, GSK said: “Within three years of the closing of the transaction, GSK intends to separate the joint venture via a demerger of its equity interest and a listing of GSK Consumer Healthcare on the UK equity market.”
GSK CEO Emma Walmsley added: “Ultimately, our goal is to create two exceptional, UK-based global companies, with appropriate capital structures, that are each well positioned to deliver improving returns to shareholders and significant benefits to patients and consumers.”
