GSK, Pfizer JV allows both pharmas to focus on innovation

GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) took the first step toward splitting up the pharma's consumer healthcare and innovative R&D businesses by agreeing to form a consumer healthcare joint venture with Pfizer Inc. (NYSE:PFE). The British pharma intends to separate from the JV within three years of the close of the deal and list the consumer healthcare business on a U.K. equity market, allowing both companies to focus on their innovative medicines businesses.

The all-stock transaction will result in GSK owning 68% of the JV -- which will operate under the GSK consumer healthcare brand -- while Pfizer will own the remaining 32%. GSK said the combined entity had 2017 global sales of about $12.7 billion. GSK will have the sole right to determine when to separate and list the JV for the first five years following the closing of the deal. Both pharmas have the right to either disperse their equity interest to existing shareholders or sell it through an IPO...