Merge GSK and Pfizer to create the world's largest consumer health company

On December 19, GSK and Pfizer announced an agreement to merge their consumer health businesses and build a world's leading consumer health care company with a strong iconic brand The transaction has been unanimously approved by the board of directors of the two companies According to the transaction, the combined company will operate under the name of GSK consumer healthcare, with global sales of about 12.7 billion dollars in 2017, including Pfizer's consumer healthcare revenue of about 3.5 billion dollars and GSK's consumer healthcare revenue of about 9.2 billion dollars The deal is expected to be completed in the second half of 2019, subject to GSK shareholder approval, regulatory approval and customary trading conditions According to the terms of the agreement, GSK will have a majority stake of 68% in the joint venture and Pfizer will have the remaining 32% In terms of personnel, Emma Walmsley, CEO of GSK, will be the chairman of the new joint venture, the current CEO of GSK consumer healthcare will be the CEO of the new joint venture, and Tobias hestler, the current CFO of GSK consumer healthcare will be the CFO of the new joint venture Pfizer has the right to appoint three of the nine members of the board of directors of the joint venture The new joint venture will take the lead in the global consumer healthcare sector, achieving stronger sales, cash flow and profit growth driven by strong brands with leading categories, scientific based innovation and substantial cost synergies The joint venture will bring together two highly complementary and trustworthy consumer healthcare brand portfolios, including GSK's sensodyne, Voltaren and Panadol, and Pfizer's Advil, centrum and Caltrate The joint venture will become a leader in pain relief, breathing, vitamins, mineral supplements, digestive health, skin health, therapeutic oral health, as well as the world's largest consumer health business and global leader in OTC products, with a market share of 7.3%, ahead of recent competitors (4.1%) In addition, the joint venture is expected to become the first or second largest consumer healthcare business in all key regions of the world, including the United States, Europe, China, India and Australasia The statement also said that GSK would pay a US $900 million break-up fee if: 1) GSK's board of directors changes, withdraws or limits its proposed transaction proposal to shareholders for approval; 2) GSK's shareholders vote on and do not approve the proposed transaction; 3) GSK's shareholders do not approve the proposed transaction by September 30, 2019 (which may be extended in some cases) "18 months ago, I set clear priorities and a capital allocation framework for GSK to improve our long-term competitive performance and strengthen our ability to deliver new breakthrough drugs and better healthcare products to people around the world," said Walmsley We have improved our business performance and proposed new approaches to R & D The company began to reshape the group's portfolio by prioritizing R & D projects, acquiring tumor biopharmaceutical company tesaro, acquiring consumer healthcare business, and divesting a series of non core businesses " "The deal announced today is a unique opportunity to accelerate this work and will create greater value for shareholders by merging GSK and Pfizer's consumer healthcare businesses At the same time, the increase in cash flow and the expected separation of GSK's consumer healthcare business will contribute to GSK's future capital planning and further investment in our pharmaceutical pipeline The deal also points the way forward for GSK to create a new global pharmaceutical / vaccine company In the end, our goal is to create two excellent UK based multinational companies with appropriate capital structure, each of which can provide better returns to shareholders and bring significant benefits to patients and consumers " Walmsley said (compiled by Sina pharmaceutical / newborn) article reference source: Pfizer and glossmithkline announce joint venture to create a premier global consumer healthcare company