GSK, Pfizer close joint venture

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GSK, Pfizer close joint venture

By Seth Mendelson - 08/02/2019
GlaxoSmithKline and Pfizer got their deal done.

The two mega healthcare companies announced late on Thursday that they have closed their joint venture to combine their respective consumer healthcare businesses and form the world’s largest over-the-counter business. This new venture will operate as the new GSK Consumer Healthcare.

“It’s an honor to lead GSK’s efforts in this newly combined company and team,” said Lisa Paley, who was named general manager of U.S. and Puerto Rico region at GSK. “We will draw on our decades of experience to really push the boundaries of delivering high-quality products that our customers and consumers have come to expect. The momentum we have in our business is
undeniable and I look forward to helping build the foundation for continuous growth of what is going to be one of the greatest global companies in our industry.”

The deal will create an over-the-counter powerhouse, bringing together such brands as Sensodyne, Flonase, Tums, Advil, Centrum and Caltrate. GSK officials said the combined brand portfolio forms the world’s largest over-the-counter business with category leadership positions in pain relief, respiratory, vitamins, minerals and supplements, and therapeutic Oral Health. In addition, operating together, the two businesses will hold the number one OTC position in the U.S. and the number two OTC position in China — the two biggest OTC markets in the world.

GSK’s newly appointed U.S. chief customer officer, Dennis Curran commented, “Combining our strong businesses as one creates a world-class trusted and valued company. By bringing these two companies together it strengthens our reach and sets us up for unparalleled success that will allow us to enhance the customer and consumer experience. I am excited to work alongside this talented and experienced team to further advance our vision as we continue to evolve."

By establishing the new joint venture company, the two leading consumer healthcare companies aim to leverage the combined strengths to provide even greater value to both customers and consumers through a relentless focus on building an operating environment that fosters competitiveness, innovation and growth.

“As we come together and continue to grow, I look forward to bringing new energy to consumer and customer obsession, whilst further elevating our digital, data and analytics capabilities. With ventures like this one, I am extremely confident we will move even faster, innovate like never before, and pull away from the competition,” said Amardeep Kahlon, named as GSK’s U.S. chief marketing officer said.

As previously announced, under the terms of the transaction, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%.