GlaxoSmithKline is combining its consumer health business with Pfizer’s into a new joint venture which will boast combined sales of £9.8 billion.
According to a company release, GSK will have a majority controlling equity interest of 68% while Pfizer will have the remaining 32%.
This follows the recent buyout of Novartis’ stake in GSK Consumer Healthcare which, GSK said, lays the groundwork to “create a new world-leading consumer healthcare business”.
It also forms a keystone in GSK’s plan to strengthen its pharmaceuticals business over the next few years.
This it will accomplish by boosting cashflow and providing an effective pathway through the separation of GSK Consumer Healthcare to build further support for investment in its R&D pipeline.
“Through the combination of GSK and Pfizer’s consumer healthcare businesses we will create substantial further value for shareholders,” said GSK CEO Emma Walmsley.
“At the same time, incremental cashflows and visibility of the intended separation will help support GSK’s future capital planning and further investment in our pharmaceuticals pipeline.”
She added: “Ultimately, our goal is to create two exceptional, UK-based global companies, with appropriate capital structures, that are each well positioned to deliver improving returns to shareholders and significant benefits to patients and consumers.”