The consumer health product joint venture Pfizer Inc. has agreed to form with GlaxoSmithKline PLC could drive each firm toward its goal in the sector, even with GSK holding the upper hand as majority owner with initial control of potentially spinning off the JV.
GSK And Pfizer Start Consumer JV For Different Reasons, Aim For Similar Goals
Big pharmas' agreement could put consumer health where Pfizer wants, entirely in its rear-view mirror, and points GSK toward what it wants, more research and development funding freed up for the pharmaceutical ingredient operations that are its chief revenue drivers. All-equity deal, giving GSK 68% control and expected to close in 2019 second half, also likely will boost investors' confidence in the firms as both have been dogged by pressure to sell, spin-off or otherwise divest their consumer businesses.
