At least three popular brands of Pfizer in India, Corex, Gelusil, Becosules will be not be marketed under that JV. Those three key brands constitute about one-fifth of Pfizer's sales in India.
The merger of GlaxoSmithKline (GSK) and Pfizer consumer businesses, may not set the floor on fire, as major brands sold by the two listed entities in India will not come under the proposed joint venture (JV).
GSK and Pfizer on December 19 announced the merger of their consumer healthcare businesses, with combined sales of $12 billion, by creating a JV with GSK owning 68 percent and Pfizer 32 percent.
At least three popular brands of Pfizer in India, Corex, Gelusil, Becosules will be not be marketed under that JV.
These three key brands constitute about one-fifth of Pfizer's sales in India, and the company that had sales of around Rs 2,000 crore in India in FY18, is looking to divest these brands. The company generates much of its revenues from pneumococcal vaccine Prevnar13.
Hair removal cream Anne French and pain medication Anacin of Pfizer will be part of the JV said Pfizer in a statement to stock exchanges.
As far as GSK is concerned, it had already agreed to sell its consumer health business to HUL in a Rs 31,700 crore all-stock deal.
The terms of the deal include the distribution of GSK’s over-the-counter (OTC) and oral care brands such as Crocin, Eno and Sensodyne.
The combined sales of these products is estimated to be around Rs 1,000 crore.Nothing is expected to change as a result of the merger between the consumer healthcare arms of GSK and Pfizer at least in India. However
Pfizer will get a boost from GSK’s experience of building brands. GSK OTC products have strong brand loyalty among customers.
GSK under its CEO Emma Walmsley is focusing on innovation. The company in December bought Tesaro, a cancer-focused company based in the US for approximately $5.1 billion. The Tesaro buyout gives GSK its FDA-approved ovarian cancer drug Zejula (or niraparib).To improve profitability in India, GSK initiated portfolio rationalisation, price hikes and an expanding vaccines business.