GSK and Pfizer merge OTC divisions to become largest company of its kind in the world

GlaxoSmithKline and Pfizer have reached an agreement to create a new joint venture for over-the-counter (OTC) drugs, becoming the largest company of its kind in the world.The two major pharmaceutical companies announced Thursday night, Aug. 1, they had finalized the creation of the joint company, which brings together both companies' mainstream healthcare activities. It will operate under the name GSK Consumer Healthcare."It's an honor to lead GSK's efforts in this new company and this team," said Lisa Paley, who has been named GSK Regional Executive Director for the U.S. and Puerto Rico. "We will build on our decades of experience to push the boundaries of offering the highest quality products our customers and consumers expect. I look forward to helping lay the foundation for continued growth in what will be one of the largest global companies in our industry."No information has yet been released on the impact of this merger on Canadian operations for either of the companies.The new entity will include the brands Sensodyne, Flonase, Tums, Advil, Centrum and Caltrate. GSK officials said the combined brand portfolio makes GSK Consumer Healthcare the largest OTC company in the world, and will include leadership positions in the areas of pain relief, vitamins, minerals, supplements, and therapeutic oral health.For Pfizer, this is the second merger announcement this week. On Monday, July 29, the U.S. company announced the merger of its generic drug business with competitor Mylan. The combined portfolio of the new joint venture will contain the brands that already dominate their respective markets, including the anti-cholesterol Lipitor, Viagra, the analgesic Lyrica, and EpiPen.According to a joint statement, the two leading manufacturers in the consumer healthcare sector are looking to leverage their combined strengths to deliver even greater value to customers and consumers by creating an operating environment that is conducive to competitiveness, innovation and growth."The creation of this joint venture with Pfizer marks the beginning of a new phase of GSK's transformation," said GSK CEO Emma Walmsley. "This is an important moment for our group that will allow us to found two companies: one in prescribed drugs and vaccines and the other in consumer health products."Under the terms of the transaction, Pfizer holds a 32% interest in the joint venture and GSK a 68% interest.Translated from the original French.

GSK and Pfizer merge OTC divisions to become largest company of its kind in the world

Register for free access or login.

Related Topics

Business Topic