BRIEF—GSK completes consumer health transaction with Pfizer

UK pharma major GlaxoSmithKline says it has completed its transaction with US giant Pfizer to combine their consumer healthcare businesses into a world-leading joint venture.

GSK has a controlling equity interest of 68% and Pfizer has an equity interest of 32% in the JV.

Underpinned by science-based innovation, it is the global leader in OTC products and has number 1 or 2 market share positions in all key geographies, including the USA and China.

Following today’s announcement, the JV will focus on completing the integration of the two businesses, which is expected to realise annual cost savings of £500 million ($890 million) by 2022 for expected total cash costs of £900 million and non-cash charges of £300 billion.

Up to 25% of the cost savings are intended to be reinvested in the business to support innovation and other growth opportunities.

As previously announced, GSK intends to demerge the JV from the company within three years and to list the GSK Consumer Healthcare business on the UK equity market.