Pfizer and GSK Dominates Consumer Health with Newest Joint Venture

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At the end of 2018, Pfizer Inc. and GlaxoSmithKline (GSK) announced their new consumer healthcare joint venture. It promises to deliver stronger sales, cash flow, and earnings growth driven by category leading Power Brands, science-based innovation, and substantial cost synergies. With combined sales of ~$12.7B, the joint venture will become a global leader for Over-the-Counter (OTC) products and position Pfizer and GSK’s Consumer Healthcare Business  to have an OTC market share of 7.3%, the largest in the world. GSK announced this proposed transaction as its strategic plan to strengthen its Pharmaceuticals business and R&D pipeline by scaling GSK Consumer Healthcare within the next three years then separating from the joint venture-- creating two new global companies. By doing so, GSK expects further value for its shareholders and advanced developments in both their Consumer Health and Pharmaceutical businesses.