GlaxoSmithKline has announced the completion of its tie-up with Pfizer's consumer health portfolio, adding that the joint venture is expected to realise annual cost savings of £500 million (€549 million) by 2022.
The joint venture brings together GSK's portfolio of consumer healthcare brands, such as Sensodyne, Voltaren and Panadol with Pfizer's Advil, Centrum and Caltrate, among others.
GSK will own a 68% stake in the joint venture, while Pfizer will own 32%. It will continue to be led by GSK Consumer Healthcare CEO Brian McNamara.
The combined entity, which will trade under the name GSK Consumer Healthcare, will hold number one or number two positions in all markets in which it operates, GSK added, including the US and China.
Up to 25% of the annual cost savings are to be reinvested in the business, GSK added, 'to support innovation and other growth opportunities'.
“Now the deal has closed, our focus will be on completing the integration of these two businesses and leveraging their combined strength," commented Brian McNamara, chief executive of GSK Consumer Healthcare.
"With our portfolio of brilliant, science-based brands and strong talent and capabilities, we are well-positioned to create a world-leading consumer healthcare business with stronger sales, cash flow and contribution to earnings," he added.
GSK plans to demerger the joint venture from the company within three years, and list the GSK Consumer Healthcare business on the UK equity market, it said.
“The successful closing of the joint venture represents an important and exciting step in forming a world-class pure-play consumer healthcare business,” said Albert Bourla, Chief Executive Officer, Pfizer.
“It also furthers Pfizer’s evolution to be a more focused, global leader in science-based, innovative medicines that delivers breakthroughs that change patients’ lives and creates long-term value for shareholders.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.