Just one week after announcing a company-wide reorganization pending its integration of Wyeth, Pfizer Inc. was once again in the headlines--this time for an innovative deal with GlaxoSmithKline PLC to create a jointly owned company focused on HIV therapeutics. [See Deal] The marriage combines GSK’s marketing muscle and its established stable of products with Pfizer’s newer but earlier-stage offerings; GSK’s 85% equity share makes it by far the dominant partner, however. Still, by merging the pipelines and commercial infrastructures of both organizations, Pfizer and GSK create a business that is far stronger than either is capable of operating—or willing to operate--independently. HIV wasn’t a core priority for either drug company, and carving it out helps isolate some of the unwelcome controversy this therapeutic area can attract.
While it’s unlikely the new--and as yet unnamed--joint venture will unseat rival Gilead Sciences Inc. as the top player in...