The two pharmaceutical giants set to work together to form a new, HIV treatment based company
By Gabe Perna
In history there has been instances of rivals working together to fix a common disturbance. Such was the case during World War 2 when the USSR and the US teamed up with the other Allies to fight the oppressing fascists. GlaxoSmithKline PLC and Pfizer Inc. may not see eye to eye on many things. However, it's clear the two pharmaceutical companies realize there is still a desperate need to solve the global HIV crisis.
Therefore, the two companies have announced they are forming a company to solely focus on HIV treatments. For the time being GlaxoSmithKline will have 85 percent equity interest in the joint venture while Pfizer will have the remaining 15. Glaxo has a stronger focus in HIV treatment products.
The new company, which will control nearly 20 percent of market in treatment for HIV, will be able to focus more intently on the virus than either Pfizer or GlaxoSmithKline would have been able to by themselves. It will have an industry leading pipeline of six innovative medicines along with four targeted medicines currently in Phase II development. Additionally, be able to contract research and development directly from Pfizer and GlaxoSmithKline.
“Today marks a definitive step by GSK to renew our focus and deliver more medicines, more efficiently, to people living with HIV/AIDS. At the core of this specialist business is a broad portfolio of products and pipeline assets, which can be more effectively leveraged through the new company’s strong revenue base and dedicated research capability. HIV remains a global threat with increasing incidence and viral resistance. This new company will be better placed to meet these challenges and improve access to treatments," Chief Executive Officer, GSK, Andrew Witty said in a statement.
For more check out the GSK press release