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Pfizer Inc deal with GlaxoSmithKline plc will have no India impact

Ruling out any impact on GSK's India business, company sources said in India the pharma entity owned and manufactured products such as Iodex and Ostocalcium, which were marketed by GSK Consumer

Sohini Das  |  Mumbai 

GlaxoSmithKline, gsk

The much-hyped global agreement between plc (GSK) and Pfizer Inc to combine their consumer businesses does not seem to affect their Indian entities as the major brands sold here are not part of the global deal.

Both and Pfizer are listed entities here. In India GSK operates through two entities — GSK Pharmaceuticals and Only recently, GSK Consumer has divested its malted drink brand Horlicks (along with other nutrition beverages such as Boost, etc) to (HUL) to which the former has also given the distribution rights for its other consumer products for the next five years.

GSK Consumer’s shares ended flat on the BSE on Wednesday at Rs 7,803 a piece, down 0.21 per cent, while Pfizer ended at Rs 2878 a piece, up 0.7 per cent.

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Ruling out any impact on GSK’s India business, company sources said in India the pharma entity owned and manufactured products such as Iodex and Ostocalcium, which were marketed by GSK Consumer. However, now these are marketed by HUL.

Pfizer, the Indian arm of Pfizer Inc, too, clarified that the major consumer healthcare brands it owned and marketed in the country were not part of the deal. A Pfizer spokesperson said, “This is to clarify that the portfolio of this JV company will not include Pfizer brands Corex, Gelusil and Becosules. These brands will continue to be marketed by India.”

Ranjit Kapadia, analyst with Centrum Broking, said the global brands that were part of the deal included Nicorette (anti-nicotine addiction gum), Excedrin (headache relief drug)and TUMS (antacid) from GSK while Pfizer had more brands that would be brought under the JV. Pfizer’s brands included Centrum (multivitamin), Caltrate (calcium and vitamin D), Advil (ibuprofen), Celebrex (arthritis drug), Bextra (joint pain relief drug).


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On Wednesday GSK and Pfizer announced that they would combine their consumer health businesses in a JV with sales of $12.7 billion — 68 per cent to be owned by GSK.

Pfizer’s major consumer healthcare brands in India include Becosules (MAT of Rs 3.12 billion in November 2018), Gelusil (MAT of Rs 1.76 billion in November) and Corex (MAT of Rs 1.45 billionn in November).

MAT refers to moving annual turnover. Even an old brand like Becosules is clocking a 5-year compounded annual growth rate (CAGR) of 5 per cent.

As part of its strategic review of the global consumer business, Pfizer had identified brands such as Becosules, Corex and Gelusil range of products for inclusion in the review. However, no decision was taken.


In detail

  • GSK Plc and Pfizer Inc to combine their consumer health businesses into a JV
  • Combined sales of JV to be $12.7 bn
  • GSK to have controlling stake of 68% in JV
  • GSK's Sensodyne, Voltaren, Panadol along with Pfizer's Advil, Centrum and Caltrete are going to be part of the JV
  • The global deal will not impact the Indian businesses of GSK and Pfizer as major brands sold here are not part of JV
  • GSK Consumer has already sold Horlicks and other malted beverages to HUL
  • It has also granted distribution rights for other consumer brands to HUL
  • Pfizer said that Becosules, Corex and Gelusil are not part of the global deal


With inputs from Aneesh Phadnis

First Published: Wed, December 19 2018. 22:05 IST
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