Healthcare giants GlaxoSmithKline and Pfizer joined hands to boost their consumer sales business. The consumer health care business which is worth $12 billion in sales will be jointly owned by the two companies.68% shares will be held by GlaxoSmithKline. Pfizer will hold the remaining 32%. The transaction all in equity will make the combo 7.3% ahead of their competitors. Their competitors include Johnson and Johnson, Sanofi and Bayer.
The pharma industry is looking for innovative products which give high profits. The deal would enhance both GlaxoSmithKline and Pfizer vision to be accomplished. Now Pfizer has established the best franchise and GlaxoSmithKline has divested its business. Earlier GlaxoSmithKline walked out of the first round of talks in March 2018. But everything went well, and the deal is finalized.
Products Included In the Deal:
The deal will make the entities leader in the following categories. They include pain relief, respiratory, vitamin and mineral supplements, digestive health, Over the Counter (OTC) skin health and therapeutic oral health. The products included are Sensodyne, crocin, Voltaren, Panadol, Anacin, Anne French, Advil, Centrum and Caltrate. Pfizer has not included Corex, Gelusil, and Becosules in the venture. As for as GlaxoSmithKline is considered, it won’t include consumer healthcare nutrition products like Horlicks which is to be divested to Unilever.
Glaxosmithkline Innovative Idea:
GlaxoSmithKline is on the acquiring spree. It acquired over-the-counter drugs of Novartis for $13 million in March. GlaxoSmithKline is also in the process of taking control of Swedish drugmaker AstraZeneca. This acquisition helps GlaxoSmithKline to set its feet in Innovative drugs. But both companies depend on legacy prescription brands and vaccines to run its business.
Pfizer’s Branding Strategy:
Pfizer is less known among Indian consumers. GlaxoSmithKline has created a royal brand name in India. The joint venture makes the consumer business for Pfizer to be done easily. Now all the Pfizer products can be sold in India through GlaxoSmithKline consumer brand.