>> From Advil painkillers to Sensodyne toothpaste, a new giant is in the making in consumer health products. GlaxoSmithKline striking a deal with US rival Pfizer. The two will put their consumer health goods into a joint venture. With 7% of the global market, it would dwarf rivals like Johnson & Johnson.
The deal is all part of a big rethink by GSK boss Emma Walmsley, who took over last year. It will also see the British firm's prescription medicine and vaccines split into a standalone firm. And the move comes as a shock, Walmsley had previously played down the idea of breaking up the group.
Now GSK will be in the driving seat in the new venture, with a stake of almost 70%. For Pfizer, the deal ends a long headache. It has tried and failed to sell its consumer products unit. Now both companies promise big efficiency gains from the tie up, over $600 million a year.
Investors seem to buy it. GSK shares jumping 7% after the news broke.