logo
Plus   Neg
Share
Email

Pfizer Closes JV With GlaxoSmithKline, Forms GSK Consumer Healthcare

Pfizer Inc. (PFE) announced the closing of its joint venture with GlaxoSmithKline plc (GSK,GSK.L) to combine their respective consumer healthcare businesses.

The combined business, which will operate globally as GSK Consumer Healthcare, is now the world's largest over-the-counter or OTC business in Pain Relief, Respiratory and Vitamins, Minerals and Supplements, and Therapeutic Oral Health.

Under the deal terms, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%. The new JV will be led by CEO Brian McNamara.

As part of the agreement, Pfizer has appointed three out of the nine members of the joint venture's board.

Pfizer expects the transaction would deliver $650 million in peak cost synergies and to be slightly accretive on a full-year basis in each of the first three years following the closing.

GSK intends to separate the joint venture as an independent company through a demerger of its equity interest to its shareholders. The company plans to list the joint venture on the UK equity market.

GSK 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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Pfizer said Friday it reached a multi-year deal with Gilead Sciences to manufacture and supply Gilead's investigational antiviral remdesivir for COVID-19 patients. Ferring Pharmaceuticals US is recalling various nasal sprays citing superpotency or amounts of desmopressin higher than specified, the U.S. Food and Drug Administration announced in a statement. The recall involves all lots on the market of DDAVP Nasal Spray 10 mcg/0.1mL, Desmopressin Acetate Nasal Spray 10 mcg/0.1mL, and STIMATE Nasal Spray 1.5 mg/mL. U.S. President Donald Trump has issued executive orders to ban Chinese mobile application TikTok as well as WeChat, citing a threat to national security and its economy. China's ByteDance Ltd. owns TikTok, a video-sharing mobile app, while Tencent Holdings Ltd. owns WeChat, a messaging, social media, and electronic payment app.
Follow RTT