Pfizer will receive 32 percent equity stake in the joint venture and will have the right to appoint three out of the nine members of the joint venture’s board.
Share price of Pfizer gained nearly 3 percent intraday Thursday after company entered in to joint venture with GlaxoSmithKline.
Pfizer's parent company Pfizer Inc., USA and GlaxoSmithKline plc have entered into an agreement to create a premier global consumer healthcare company.
Pfizer informed that the portfolio of this joint venture company will not include the brands Corex, Gelusil and Becosules. These brands will continue to be marketed by Pfizer in India.
The boards of directors of both companies have unanimously approved the transaction under which Pfizer will contribute its consumer healthcare business to GlaxoSmithKline’s existing consumer healthcare business.
Ian Read, chairman and current chief executive officer of Pfizer said, "Pfizer and GSK have an excellent track record of creating successful collaborations, and we look forward to working together again to unlock the potential of our combined consumer healthcare businesses.”
Pfizer will receive 32 percent equity stake in the joint venture and will have the right to appoint three out of the nine members of the joint venture’s board.At 09:47 hrs Pfizer was quoting at Rs 2,912, up Rs 33.25, or 1.16 percent and GlaxoSmithKline Consumer Healthcare was quoting at Rs
7,837.95, up Rs 34.95, or 0.45 percent on the BSE.For more market news, click here