Pharmaceutical giants Pfizer and GlaxoSmithKline are combining their over-the-counter drugs and healthcare products to create a new joint venture.
The drugs include well-known brands, such as the painkillers Advil and Excedrin, Sensodyne toothpaste, Tums, and the vitamin brands Centrum and Caltrate. The companies plan to finalize the deal in the second half of 2019, and will split off the consumer part of the business after three years, at which point it will become the largest seller of over-the-counter products in the world.
The new venture will have about $12.7 billion in joint sales annually, and will need to be approved by shareholders and regulators. The new company will be listed in London, which is where Glaxo is headquartered.
Since last year, Pfizer has been looking to sell the over-the-counter part of the company, which makes up about 7 percent of its revenue. Most of its business is in prescription drugs, including blockbusters such as Viagra and Lipitor. Pfizer has been called out for price hikes on Twitter by President Trump.
Shares of Glaxo jumped more than 7 percent in London following the announcement. Glaxo will have a 68 percent stake in the company and Pfizer will hold the rest.
