GlaxoSmithKline admits Pfizer healthcare interest

GlaxoSmithKline’s chairman, Chris Gent, has admitted that the UK’s largest pharmaceutical company is interested in making a multi-billion dollar takeover bid for Pfizer’s over-the-counter healthcare arm, which sells products like Sudafed and Listerine mouthwash.

Already offering products such as branded toothpastes and various smoking relief aids, Glaxo is rumoured to be in the running to buy the Pfizer healthcare division along with Reckitt Benckiser and Johnson and Johnson, for approximately $15 billion (8.14 billion pounds).

Mr Gent told the Reuters news agency before a speech at the Confederation of British Industry: “The over-the-counter business is an important part of Glaxo. It’s been doing well for us, and we’d like to expand, although obviously at the right price, rather than just for the sake of expansion.”

Glaxo also announced it is to open a 102 million pound vaccine-producing plant in Singapore to produce paediatric vaccines. The company’s senior vice-president of global industrial operations for Glaxo’s biologicals division, Patrick Florent, told Reuters: “This plant will serve our global market, including Europe and the US.”

Singapore has proven to be a previous source of investment for Glaxo. In 2004 it invested in a neurodegenerative disease pre-clinical research centre. Back in 1982, Glaxo created a ranitidine hydrochloride manufacturing facilty, while Beecham Pharmaceuticals (later incorporated into GlaxoSmithKline) produced semi-synthetic penicillin in Singapore from 1972.

Glaxo’s investment in Singapore stood at S$1 billion (340 million pounds) in November 2005 and created 600 manufacturing jobs, according to Singapore’s Biomedical Service initiative.

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