A mega-deal has taken place between drug firms GlaxoSmithKline (GSK) and Pfizer which means that painkiller brands Panadol and Anadin will be bought under one venture.
Chief Executive Emma Walmsley announced today that SK and Pfizer would combine their consumer health businesses in a joint venture with sales of £9.8bn– 68 per cent-owned by the British company– in an all-equity transaction.
GlaxoSmithKline plans to split into two businesses — one for prescription drugs and vaccines, the other for over-the-counter products — after forming a new joint venture with Pfizer’s consumer health division.
The revamp is the boldest move yet by Walmsley, who took over last year.
The new joint venture with Pfizer is expected to generate total annual cost savings of £500m by 2022 for expected total cash costs of 900m and non-cash charges of 300 million. GSK plans divestments of some 1 billion pounds.