Glaxo and Pfizer to Combine Consumer Health in Joint Venture

(Bloomberg) -- GlaxoSmithKline Plc and Pfizer Inc. agreed to combine their consumer health-care businesses in a joint venture controlled by the U.K. company.

• Glaxo will hold 68 percent of the venture, which will have combined sales of $12.7 billion. The U.K. company said it plans to list the company on the stock market within three years.

Key Insights

• The move shows that Glaxo is doubling down on consumer health after Chief Executive Officer Emma Walmsley earlier this year agreed to pay $13 billion for Novartis AG’s stake in a joint venture that includes Panadol pain relievers.
• The Novartis deal came only days after the U.K. company abandoned its pursuit of Pfizer’s consumer unit. Wednesday’s agreement brings together Glaxo’s Sensodyne, Voltaren and Panadol brands with Pfizer’s Advil, Centrum and Caltrate.
• Glaxo’s CEO is on a run to reshape the company after agreeing to buy drugmaker Tesaro Inc. for $5.1 billion and expand in cancer.

Market Action

• Glaxo shares are up 9.5 percent this year in London.

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