GlaxoSmithKline and Pfizer have announced the combining of their consumer healthcare businesses, bringing together two portfolios of consumer brands into a world leading joint venture.
The joint venture will focus on integrating the two business which is expected to generate an annual cost savings of £0.5 billion by 2022, total cash costs of £0.9 billion and cash charge of £0.3 billion. GSK has controlling equity interest of 68% (Pfizer 32%), but both companies have stated that 25% of their overall cost savings will be reinvested back into the business in order to support growth and innovation.
“GSK and Pfizer combine Consumer Healthcare Businesses“
CEO at GSK Consumer Healthcare Brian McNamara commented on the next steps “With Pfizer’s and our portfolio, we are in a good position to create a world leading consumer healthcare business. Our focus is to now complete the integration of the two business and look at how we can achieve stronger sales, cash flow and contribution to earnings.”