Released January 14, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--GlaxoSmithKline (NYSE:GSK) (GSK) (Brentford, England) and Pfizer (NYSE:PFE) (New York, New York) have announced plans to merge their consumer healthcare divisions with combined sales of approximately £9.8 billion ($12.7 billion).
GSK will hold a majority controlling equity interest of 68%, and Pfizer will have an equity interest of 32% in the proposed joint venture. The new company will bring together two high-profile portfolios of consumer health brands, including GSK's Sensodyne, Voltaren and Panadol and Pfizer's Advil, Centrum and Caltrate. GSK claimed it will be the leading player in "Pain Relief, Respiratory, Vitamin and Mineral Supplements, Digestive Health, Skin Health and Therapeutic Oral Health." The new company, claimed GSK, will be the global leader in over-the-counter (OTC) products with a market share of 7.3%, ahead of its nearest competitor at 4.1% and have "number 1 or 2 market share positions in all key geographies, including the U.S. and China."
GSK is planning to split into two businesses, one for prescription drugs and vaccines, and the new joint venture for OTC products. GSK Chief Executive Officer Emma Walmsley has been appointed chair of the joint venture.
"Eighteen months ago, I set out clear priorities and a capital allocation framework for GSK to improve our long-term competitive performance and to strengthen our ability to bring new breakthrough medicines and better healthcare products to people around the world. We have improved our operating performance and have set out a new approach to R&D. The transaction we have announced today is a unique opportunity to accelerate this work," said Walmsley.
She added: "With our future intention to separate, the transaction also presents a clear pathway forward for GSK to create a new global Pharmaceuticals/Vaccines company, with an R&D approach focused on science related to the immune system, use of genetics and advanced technologies, and a new world-leading Consumer Healthcare company. Ultimately, our goal is to create two exceptional, U.K.-based global companies, with appropriate capital structures, that are each well positioned to deliver improving returns to shareholders and significant benefits to patients and consumers."
The impact of the new joint venture of both company's manufacturing operations in Europe and elsewhere are unknown. Pfizer employs 3,300 people in Ireland at six manufacturing facilities that produce many of the company's leading products. GSK employs roughly 1,700 people across its four locations in Ireland. Asked about the impact to manufacturing operations and jobs in Ireland, a GSK spokesperson told the Irish Examiner: "Subject to approvals, we would expect to close the deal in the second half of 2019. The separation is expected to take place within three years of this, so we will have a lot of time to understand the implications, if any, for our sites in Ireland. Until then, it is very much business as usual, and we will continue to keep our employees informed over the coming months and years as things progress."
Last year, Industrial Info reported that GSK was cutting 200 jobs at its antibiotics manufacturing plant in Ulverston, U.K., as part of its ongoing efforts to cut costs. In 2012, GSK had announced that Ulverston was in line for a £350 million ($458 million) investment to build a new large-molecule plant, but Walmsley canned the project in 2017 and announced plans to sell GSK's cephalosporin antibiotics business and the related production plants. For additional information, see October 22, 2018, article - GlaxoSmithKline Cuts 200 Jobs at U.K. Antibiotics Plan.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
GSK will hold a majority controlling equity interest of 68%, and Pfizer will have an equity interest of 32% in the proposed joint venture. The new company will bring together two high-profile portfolios of consumer health brands, including GSK's Sensodyne, Voltaren and Panadol and Pfizer's Advil, Centrum and Caltrate. GSK claimed it will be the leading player in "Pain Relief, Respiratory, Vitamin and Mineral Supplements, Digestive Health, Skin Health and Therapeutic Oral Health." The new company, claimed GSK, will be the global leader in over-the-counter (OTC) products with a market share of 7.3%, ahead of its nearest competitor at 4.1% and have "number 1 or 2 market share positions in all key geographies, including the U.S. and China."
GSK is planning to split into two businesses, one for prescription drugs and vaccines, and the new joint venture for OTC products. GSK Chief Executive Officer Emma Walmsley has been appointed chair of the joint venture.
"Eighteen months ago, I set out clear priorities and a capital allocation framework for GSK to improve our long-term competitive performance and to strengthen our ability to bring new breakthrough medicines and better healthcare products to people around the world. We have improved our operating performance and have set out a new approach to R&D. The transaction we have announced today is a unique opportunity to accelerate this work," said Walmsley.
She added: "With our future intention to separate, the transaction also presents a clear pathway forward for GSK to create a new global Pharmaceuticals/Vaccines company, with an R&D approach focused on science related to the immune system, use of genetics and advanced technologies, and a new world-leading Consumer Healthcare company. Ultimately, our goal is to create two exceptional, U.K.-based global companies, with appropriate capital structures, that are each well positioned to deliver improving returns to shareholders and significant benefits to patients and consumers."
The impact of the new joint venture of both company's manufacturing operations in Europe and elsewhere are unknown. Pfizer employs 3,300 people in Ireland at six manufacturing facilities that produce many of the company's leading products. GSK employs roughly 1,700 people across its four locations in Ireland. Asked about the impact to manufacturing operations and jobs in Ireland, a GSK spokesperson told the Irish Examiner: "Subject to approvals, we would expect to close the deal in the second half of 2019. The separation is expected to take place within three years of this, so we will have a lot of time to understand the implications, if any, for our sites in Ireland. Until then, it is very much business as usual, and we will continue to keep our employees informed over the coming months and years as things progress."
Last year, Industrial Info reported that GSK was cutting 200 jobs at its antibiotics manufacturing plant in Ulverston, U.K., as part of its ongoing efforts to cut costs. In 2012, GSK had announced that Ulverston was in line for a £350 million ($458 million) investment to build a new large-molecule plant, but Walmsley canned the project in 2017 and announced plans to sell GSK's cephalosporin antibiotics business and the related production plants. For additional information, see October 22, 2018, article - GlaxoSmithKline Cuts 200 Jobs at U.K. Antibiotics Plan.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
