Panadol and Chapstick firms in mega-merger

GSK Image copyright Getty Images

The painkiller brands Panadol and Anadin will be bought under one roof under a giant deal between drug firms GlaxoSmithKline and Pfizer.

The two firms are combining their consumer healthcare businesses into one firm with annual sales of £9.8bn.

Other brands involved in the deal include Aquafresh toothpaste and Chapstick lip balm.

The move comes nearly nine months after GSK bought out Swiss firm Novartis’s stake in a similar joint venture.

GSK, which will have 68% of the new business, said the deal was a “compelling opportunity” to build on its earlier buyout and deliver stronger sales.

The merger will have combined sales of £9.8bn ($12.7bn) and is expected to take effect in the second half of 2019, subject to regulatory approval.

“Through the combination of GSK and Pfizer’s consumer healthcare businesses, we will create substantial further value for shareholders,” said GSK chief executive Emma Walmsley.

“Ultimately, our goal is to create two exceptional, UK-based global companies, with appropriate capital structures, that are each well positioned to deliver improving returns to shareholders and significant benefits to patients and consumers.”

The joint venture will go by the name of GSK Consumer Healthcare. Apart from GSK’s Nigerian subsidiary, which is excluded from the deal, it will operate in all countries where GSK and Pfizer have a presence.

GSK will have six directors on the board, while Pfizer will have three.

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