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.”