Advil and Theraflu are products that are widely recognized by consumers, and although Pfizer does not develop these drugs, it has stakes in these and other over-the-counter healthcare brands thanks to Deal with GlaxoSmithKline. Now it cashed out nearly $16 billion.
The consumer products are part of a 2019 joint venture between GSK and Pfizer, which is majority-owned by the British pharma giant. GlaxoSmithKline (GSK) will spin off the joint venture into a separate public company called Haleon next month.
The ownership split of Haleon is currently 68% for GlaxoSmithKline and 32% for Pfizer.GlaxoSmithKline in its Investor Information When the split occurs, 80% of its Haleon shares will go to GSK shareholders. All GSK shareholders will receive one Haleon share for every GSK share they hold.Pfizer said Wednesday that it plans to sell all its shares. Pfizer said in its first-quarter 2022 financial report that its stake in the joint venture was valued at $15.8 billion.
The consumer health joint venture started as a deal between GlaxoSmithKline and Novartis. GSK paid $13 billion in 2018 Acquired a 36.5% stake in Novartis. Pfizer was quick to jump on the bandwagon, setting the stage for the spinoff currently underway. When GlaxoSmithKline and Pfizer formed a joint venture, GlaxoSmithKline says It plans to spin off the consumer health business into a separate public company within three years. Pfizer said Wednesday that the sale of its ownership interest is in line with the company’s “transformation into a more focused global leader in innovative science-based medicines and vaccines.”
GlaxoSmithKline and Pfizer’s planned move comes at a time when many of the healthcare industry giants are opting to focus on innovative new products, meaning consumer brands and traditional products no longer fit into their corporate strategies. Two years ago, Merck spun off its women’s health business and generic medicines into a newly public company called Organon. Becton Dickinson spins off its diabetes company into public company called Embecta in April. Johnson & Johnson is separating its consumer health business from its drug and medical device divisions.
The separation of Haleon from GSK requires approval from GSK shareholders. Government agencies and regulators must also sign off on the deal. GSK has scheduled a general meeting and shareholder vote on July 6. If approved, Haleon is expected to launch on July 18. Haleon will be listed on the London Stock Exchange when the separation of the healthcare business is completed. Soon after, it plans to file for an American depositary stock listing in the United States.
Photos by Flickr users Mike Mozart through Creative Commons license
