OTC market: a new global leader?
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GlaxoSmithKline (GSK) and Pfizer, global pharmaceutical companies, will join forces. In mid-2019, a joint venture will be established, whose main area of operation will be the OTC market (over-the-counter products).
GSK will have a majority share in the new venture – 68%. Pfizer will receive 32% of the shares. Their portfolio will include OTC drugs (including analgesics), vitamins, minerals and supplements, oral care and skin protection products, as well as digestion enhancing products.
Additionally, as a result of this undertaking, the cost synergy will amount to $650 million. The company is planned to be separated in the future, but only GSK will have the right to make this decision.
To sum up, it may mean that the global OTC market will have a new leader. The annual sales of products in the portfolio of the new company amounted to 2017. USD 12.7bn.
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