Pfizer and GlaxoSmithKline plc (GSK) have closed the deal for a joint venture to combine the parties' respective consumer healthcare portfolio. The move creates the world's largest over-the-counter (OTC) business with robust iconic brands, including GSK's Sensodyne, Voltaren, Panadol, and Pfizer's Advil, Centrum and Caltrate.
Under the terms of the transaction, Pfizer owns a 32% equity stake in the joint venture and GSK reserves 68%. Led by CEO Brian McNamara, the combined business will operate globally as GSK Consumer Healthcare.
"Now the deal has closed, our focus will be on completing the integration of these two businesses and leveraging their combined strength," McNamara said. "With our portfolio of brilliant, science-based brands and strong talent and capabilities, we are well-positioned to create a world-leading consumer healthcare business with stronger sales, cash flow and contribution to earnings," he added.
The combined brand portfolio already has leadership positions in pain relief, respiratory and vitamins, minerals and supplements, and therapeutic oral health.
With our portfolio of brilliant, science-based brands and strong talent and capabilities, we are well-positioned to create a world-leading consumer healthcare business with stronger sales, cash flow and contribution to earnings
“The successful closing of the joint venture represents an important and exciting step in forming a world-class pure-play consumer healthcare business,” said Albert Bourla, Chief Executive Officer, 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, he added.”
By operating together, the two business will hold the number one OTC position in the US and the second position in China—the two biggest OTC markets in the world.
GSK said the company intends to demerge the joint venture from the company and to list the GSK Consumer Healthcare business on the UK equity market.
The UK company will have the sole right to decide whether and when to initiate a separation and listing for a period of five years following the closing. GSK may also sell all or part of its stake in the joint venture in a contemporaneous IPO.
Emma Walmsley, Chief Executive Officer, GSK and Chair of the joint venture, commented: "The completion of the joint venture with Pfizer marks the beginning of the next phase of our transformation of GSK. This is an important moment for the Group, laying the foundation for two great companies, one in Pharmaceuticals and Vaccines and one in Consumer Health."
