GlaxoSmithKline To Split After Joint Venture Deal With Pfizer | Pharma news updates | Pharma Udyog

GSK and Pfizer would combine their consumer health businesses in a joint venture with sales of 9.8 billion pounds ($12.7 billion).

Story Highlights

• GlaxoSmithKline forms joint venture with Pfizer consumer health division
• GSK plans to split prescription drug, over-the-counter businesses
• Pfizer consumer health unit includes Advil painkillers, Centrum vitamins

London : 

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 chief executive Emma Walmsley, who took over last year.

She has previously played down the idea of breaking up the group, something that a number of investors have called for over the years.

For Pfizer, the deal resolves the issue of what to do with its consumer health division, which includes Advil painkillers and Centrum vitamins, after an abortive attempt to sell it outright earlier this year.

The new joint venture with Pfizer is expected to generate total annual cost savings of 500 million pounds by 2022 for expected total cash costs of 900 million and non-cash charges of 300 million. GSK plans divestments of some 1 billion pounds