GSK and Pfizer deal shows shift in strategy to create the leader in over the counter products

Following today’s news (19 December 2018) that GlaxoSmithKline (GSK) and Pfizer have agreed to merge their respective consumer business units, in a deal valued at £9.8bn ($12.7bn),

Maura Musciacco, Pharma Director at GlobalData, a leading data and analytics company, offers her view:

“The deal will create the largest player in over-the-counter products, with a leading offering in multiple sectors: pain relief, respiratory, vitamin and mineral supplements, digestive health, skin health, and therapeutic oral health. Historically, GSK has been a diversified player, with a footprint in in several healthcare businesses. In fact GSK’s heritage is in the non-prescription market, as both companies GSK originally stemmed from – Wellcome and Beechams – began in consumer care.

“Similarly, Pfizer also has had a large consumer business for decades. However, this recent deal represents a shift in strategy for the two big pharma companies and by merging its non-core businesses, the companies will be able to have a more focused prescription pharmaceuticals business, in addition to bringing substantial cost synergies for the combined consumer business.”

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