GlaxoSmithKline plc and Pfizer announced that they combine their consumer healthcare business to establish a world-leading consumer healthcare venture. The Joint Venture will have a significant role in Pain Relief, Respiratory and Vitamins, Minerals and Supplements, and Therapeutic Oral Health.
In the Joint Venture, Pfizer owns 32% share, and GSK owns 68% shares.
The Joint Venture includes GSK’s Sensodyne, Voltaren and Panodol and Pfizer’s Advil, Centrum and Caltrate. Both the companies claimed that the venture would become the leader in OTC products, might be either number 1 or 2 in important geographies, including the United States and China.
According to the agreement, Joint Venture will integrate both the business resulting in an expected cost saving of £0.5bn by 2022. The Joint Venture board consists of three members from Pfizer and six members from GSK. After five years, Pfizer and GSK have the right to decide when to initiate a separate public listing of the joint venture.
Of the £0.5bn savings, a quarter of savings will be invested in innovation and growth opportunities.
GSK is expecting to demerge the company from GSK within three years to list GSK Consumer Healthcare business on the UK equity market.