GSK Consumer In 2019: Start On Runway Toward Demerger For Deleveraging Debt
Executive Summary
Glaxo's priority for its consumer business is regulatory approval, expected in the second half of 2019, of a JV with Pfizer announced in December so the segment will begin contributing meaningfully to GSK's growth. CEO Emma Walmsley says the JV plan with Pfizer is GSK's "most transformational announcement to date."
You may also be interested in...
GSK And Pfizer Start Consumer JV For Different Reasons, Aim For Similar Goals
Big pharmas' agreement could put consumer health where Pfizer wants, entirely in its rear-view mirror, and points GSK toward what it wants, more research and development funding freed up for the pharmaceutical ingredient operations that are its chief revenue drivers. All-equity deal, giving GSK 68% control and expected to close in 2019 second half, also likely will boost investors' confidence in the firms as both have been dogged by pressure to sell, spin-off or otherwise divest their consumer businesses.
Horlicks Brings Unilever 'Transformative' Nutritional Deal, Market Challenges
Firm's Hindustan Unilever division will merge with s GSK Consumer Healthcare India which has had total sales around €550m so far in 2018, primarily through the Horlicks and Boost brands and with nearly 90% of the revenues in India. Also will acquire 82% stake in GSK Bangladesh and other GSK commercial operations and assets outside India, paying €3.3bn in combination of cash and shares in Hindustan Unilever.
With Its Own Home, Pfizer Consumer Health Gets Higher Profile For Sale
By setting up Pfizer Consumer Healthcare to have sales and earnings results reported separately, pharma giant could be making the division's assets more visible to potential buyers. Its sales pitch: "With a strong portfolio of global brands that span health and wellness, the company believes this business is well positioned to continue its growth."