GlaxoSmithKline is planning on splitting up into two separate businesses one of which would concentrate on selling the over the counter products while the other one would focus on the prescribed drugs and vaccines.
This new plan came into light after the formation of the new joint venture with the consumer health division of the Pfizer’s.
The revamping of the company seems like the boldest move ever taken by Emma Walmsley, who took over the post of the GSK chief Executive last year itself.
This bold move will become the forerunner of a consumer health giant along with a market share of approximately 7.3 percent, which is way too ahead of its nearest competitors Bayer and Sanofi and Johnson & Johnson as they are all around just 4 percent.
The Chief Executive Emma had previously played down this idea of splitting up into separate groups, though it had been suggested by quiet a number of investors over the years.
However on Wednesday, she said that Pfizer and GSK would soon combine in a joint venture, their joint venture in consumer health care businesses with sales of about 9.8 billion pounds out of which 68 percent is owned by the company of British , in all equity transactions.
According to GSK this deal encloses within itself the foundation of two new UK based Global companies which focus on vaccines and consumer healthcare.
Emma informed the reporters in a conference call that this deal have been something which could reach and accomplish quietly and quickly.
She considers this deal as an opportunity to enhance and strengthen the two businesses that is , of a world leading consumer healthcare business and the new GSK that focusses on vaccines and pharma.
This deal resolves the major issue for Pfizer of what to do with its consumer health division.
Source: Reuters, CBC
