Multinational drugmakers GSK and Pfizer said they would merge consumer healthcare divisions.
The two companies said on Wednesday that they would establish a joint venture, with GSK owning 68 percent, and Pfizer, the rest.
The joint venture is expected to sell the two firms’ popular over-the-counter medicines such as GSK’s painkiller Panadol, pain reliever and inflammation drug Voltaren, Pfizer’s pain reliever Advil, vitamin supplement Centrum, and heartburn treatment Nexium.
The combined sales of consumer healthcare units at the two companies exceed $12.7 billion a year. Analysts said the joint venture would become the world’s largest consumer healthcare company.
According to 2018 data by market researcher Euromonitor International, GSK accounts for 3.4 percent of the global consumer healthcare market, followed by Johnson & Johnson with 3.3 percent, Bayer with 3.1 percent, Sanofi with 2.8 percent, and Pfizer, 2.4 percent.
The joint venture of GSK and Pfizer would garner a 6 percent market share, Euromonitor said.
The global sales of consumer healthcare products have expanded 2.2 percent per year on average between 2013 and 2018. According to Euromonitor, the market will continue to grow by 3 percent annually through 2023. The global consumer healthcare market is worth 254.7 billion in 2018 and the number will go up to 294.9 billion in 2023, the market researcher forecast.
Through the joint venture, GSK and Pfizer hope to become a market leader in analgesics, vitamins, digestives, skin health and therapeutic oral health products.
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