GlaxoSmithKline plc (NYSE:GSK) recently put out word, along with Pfizer Inc. (PFE), that they have entered into an agreement to create a premier global consumer healthcare company with robust iconic brands. According to the release, “the Boards of Directors of both companies have unanimously approved the transaction under which Pfizer will contribute its consumer healthcare business to GlaxoSmithKline’s existing consumer healthcare business. The 2017 global sales for the combined business were approximately $12.7 billion.”
“We are pleased to announce this new joint venture for Pfizer Consumer Healthcare, delivering on our commitment to complete the strategic review for this business in 2018,” stated Ian Read, Chairman and current Chief Executive Officer, Pfizer. “Pfizer and GSK have an excellent track record of creating successful collaborations, and we look forward to working together again to unlock the potential of our combined consumer healthcare businesses.”
GlaxoSmithKline plc (NYSE:GSK) bills itself as a company that engages in the creation, discovery, development, manufacture, and marketing of vaccines, over-the-counter medicines, and health-related consumer products worldwide.
It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare.
The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterials, dermatology, rare diseases, immuno-inflammation, and HIV, as well as vaccines.
It also provides consumer healthcare products in wellness, oral health, nutrition, and skin health categories primarily under the Otrivin, Panadol, Fenistil, Lamisil, Breathe Right, Stiefel, Excedrin, Physiogel, Polident, parodontax, Poligrip, Sensodyne, Theraflu, and Voltaren brand names. The company offers its consumer healthcare products in the form of tablets, caplets, infant syrup drops, syrups, topical gels, nasal sprays, effervescents, lozenges, gum and trans-dermal patches, malted drinks and foods, and topical creams and non-medicated patches, as well as toothpastes, toothbrushes, mouth rinses, medicated mouthwashes, gels and sprays, denture adhesives, and denture cleansers.
It has a discovery collaboration agreement with Kymera Therapeutics LLC; a collaboration agreement with InSysBio LLC to develop quantitative systems pharmacology model of asthma; and a strategic collaboration with NeuroMetrix, Inc. to develop and market Quell technology. GlaxoSmithKline plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.
Which is Perseus?
As we discussed earlier, GSK just announced, along with Pfizer Inc. (PFE), that they have entered into an agreement to create a premier global consumer healthcare company with robust iconic brands.
That announcement figures into a tape that hasn’t been defined by any significant net price change for shares over the past week, with shares of GSK basically flat in that time.
“The combination of these leading businesses with distinct regional and category strengths will be more sustainable and broader in scope than either company individually,” said Albert Bourla, Chief Operating Officer and incoming Chief Executive Officer, Pfizer. “We believe that this joint venture is a great opportunity to ensure the future success of Pfizer Consumer Healthcare while unlocking meaningful after-tax value for Pfizer shareholders.”
GlaxoSmithKline plc (NYSE:GSK) pulled in sales of $8.1B in its last reported quarterly financials, representing top line growth of 3.2%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($3.9B against $18.4B, respectively).