(ANSA) – The laboratories GlaxoSmithKline and Pfizer decided to create a "joint venture" in the segment of over-the-counter drugs and long-term consumer products. The operation marks the birth of a global healthcare consumer giant, with total revenues of $ 12.7 billion. Glaxo will have 68% controlling interest in the new entity and plans to open the capital in the next three years.
The agreement is expected to close in the second half of 2019 and, according to Glaxo, opens the way for the division into two companies, one focused on medicines and vaccines and another for the consumer health segment.
Together, companies earned $ 12.7 billion last year. Drug makers imagined controlling all corners of home drug cabinets, from personal care items to cancer therapies and cardiovascular diseases.
However, large pharmaceutical companies are increasingly focused on developing new high-priced drugs based on cutting-edge research in genetics and other fields. In addition, the cost of investigating new cures is increasing, but insurers and governments demand lower prices.
Meanwhile, profits for many consumer companies have shrunk due to competition and the growing power of companies such as Amazon and Walmart. Over the past year, these pressures have led to unconventional combinations of pharmacy operators, health insurance companies and online retailers. At the same time, other companies that have bet heavily on medical care are coming out. The most recent was General Electric, which has confidentially requested the segregation of its health line. However, these two giants want to keep everything. Or maybe, they already have.