Companies look to expand their positions in key markets.
In December 2018, GlaxoSmithKline and Pfizer announced that they would be combining their consumer healthcare businesses into a new entity that would be the world’s largest consumer healthcare company in the world. The company will have combined sales of nearly $13 billion and account for approximately 78% of the global consumer health market.
GSK retains a majority controlling equity interest of 68%. The transaction is expected to be finalized in the second half of 2019. The business will exist first as a joint venture but become a stand-alone company within three years of deal closure.
Recently, the companies announced that they will be focusing their consumer healthcare venture on the United States and China, where they hope to build on existing strong positions. “The U.S. and China are really two of the key value drivers of the deal because it’s where Pfizer has critical mass and a significant amount of their key brands,” said Brian McNamara, CEO of GSK Consumer Healthcare.
With respect to particular product lines, the new company will be focusing on vitamins, minerals and supplements; oral care; over-the-counter pain medicines; and respiratory treatments.
