The deal between GlaxoSmithKline and Pfizer will combine the two big consumer health businesses.
GSK Pfizer deal will allow both companies to work together for the consumer health. However, GlaxoSmithKline is planning to split into 2 businesses. One for the over-the-counter products and other for the prescription drugs and vaccines.
The GSK Pfizer deal is considered as the boldest decision by Chief Executive Emma Walmsley, who took the charge in 2017. However, she previously gave idea of splitting the group, a move that is called by several investors for several years.
GSK Pfizer deal will resulted in the total savings of 500 million pounds by 2022. It is for the non-cash charges of 300 million and expected total cash costs of 900 million. However, GSK plans divestments of around 1 billion pounds.
Earlier, Walmsley revealed that Pfizer and GSK will combine the consumer health businesses in a joint venture with the 9.8 billion pounds or $12.7 billion sales.