Pharma giants Pfizer and GlaxoSmithKline to create joint consumer healthcare business
December 19, 2018 / Beth Jones Sanborn
Pharma giants Pfizer and GlaxoSmithKline are creating a joint venture consumer healthcare business. The Boards of Directors of both companies have unanimously approved the transaction under which Pfizer's consumer healthcare business will essentially roll into GlaxoSmithKline's existing consumer healthcare business. It will operate globally under the GSK Consumer Healthcare name. Pfizer will own less than 50 percent of the joint venture and GSK Consumer Healthcare expects to deconsolidate Pfizer Consumer Healthcare from its financial statements following the closing of the transaction. The terms of the transaction stipulate that Pfizer will get a 32 percent equity stake in the joint venture, and will be entitled to a proportional share of the joint venture's earnings and dividends. The company will also have the right to appoint three out of the nine members of the joint venture's board.