GlaxoSmithKline and Novartis confirm plans for consumer healthcare venture

GlaxoSmithKline and Novartis have confirmed plans to create a global consumer healthcare joint venture, following the completion of a transaction between the two firms.

The three-part deal was concluded earlier this week and saw GlaxoSmithKline sell its oncology business to Novartis, with Novartis' vaccines division moving the other way.

Following this, the companies will join forces to establish GlaxoSmithKline Consumer Healthcare, a joint venture over which GlaxoSmithKline will have majority control and an equity interest of 63.5 percent, with Novartis controlling the remainder.

This new business is expected to have leading positions in four key over-the-counter product categories – wellness, oral health, nutrition and skin health – plus commercial presence in a wide range of developed and emerging markets.

Novartis will occupy four of 11 seats on the joint venture's board and will hold certain minority and exit rights.

Sir Andrew Witty, chief executive officer of GlaxoSmithKline, said: "We will now be focused on rapidly implementing our integration plans to realise the growth and synergy opportunities we see in the new consumer healthcare and vaccines businesses."