GSK Announces $1.26 Billion Divestment of Select Consumer Healthcare Brands Ahead of Pfizer Joint Venture

VCBeat (WeChat ID: vcbeat) learned from foreign media that global healthcare company GlaxoSmithKline recently announced the sale of certain consumer healthcare brands for $1.26 billion. Additionally, the company plans to merge its remaining consumer healthcare business into its joint venture with Pfizer later this year.

It is reported that, in connection with this divestiture, GlaxoSmithKline (GSK) recently released two portfolio information packages covering its Latin American pharmaceuticals and physiological gel-based skincare products. The portfolio comprising higher-priced European medicines will be launched after the summer and has already attracted interest from private equity firms. GSK has currently engaged the investment bank Greenhill to market these portfolios to potential bidders.

GlaxoSmithKline is a science-led global healthcare company founded in London, United Kingdom, in 1929. The company operates across three core areas: vaccines, pharmaceuticals, and consumer health.

In the consumer healthcare sector, GSK focuses on the development and marketing of products in areas such as oral health, pain relief, respiratory care, nutrition, gastrointestinal health, and skin health. By fostering strong engagement with retailers, healthcare professionals, and consumers, the company enhances its reputation and builds its brand image.

GlaxoSmithKline boasts a portfolio of widely used and highly trusted brands in its consumer healthcare business, including Sensodyne, Parodontax, Poligrip, Voltaren, Panadol, Otrivin, and Theraflu. Some heritage brands, such as ENO, have a history spanning more than 140 years and remain popular to this day. In 2018, the consumer healthcare business generated £7.7 billion (approximately $9.7 billion) in sales for GlaxoSmithKline.

In December 2018, GlaxoSmithKline announced an agreement with Pfizer to establish a globally leading consumer healthcare joint venture. In May of this year, the CCI announced its approval of the joint venture formed by Pfizer and GlaxoSmithKline. Emma Walmsley, CEO of GlaxoSmithKline, will serve as the CEO of the new joint venture. Reportedly, GlaxoSmithKline holds a 68% controlling stake in the joint venture, while Pfizer holds a 32% stake. The transaction is expected to be completed in the second half of 2019.

GlaxoSmithKline also revealed that, within three years after the completion of the transaction, it would spin off the joint venture to create a new global pharmaceuticals and vaccines company and a new world-leading consumer healthcare company.

(Compiled by Zhang Xiaoxu)