GlaxoSmithKline and Pfizer Announce Agreement to Create a Specialist HIV Company
News Apr 17, 2009
GlaxoSmithKline plc (GSK) and Pfizer Inc (PFE) have announced they have entered into an agreement to create a new world-leading HIV company focused solely on research, development and commercialization of HIV medicines.
The new HIV business will be more sustainable and broader in scope than either company’s individually, and will hold a 19% share of the growing market. GSK will initially hold an 85% equity interest in the new company and Pfizer will hold 15%.
According to collaborators, the new company will have a broad product portfolio of 11 marketed products including therapies such as Combivir, Kivexa and Selzentry/Celsentri. Based on 2008 pro-forma results, this combined portfolio generated sales of approximately £1.6 billion and these revenues will provide the new company with financial stability and support investment in its pipeline.
The clear focus of the new business will be to invest in research and development of HIV treatments and formulations that improve adherence and overcome resistance to the virus.
The company will have a pipeline of 6 targeted medicines, including 4 compounds in phase II development. Altogether, the new company will have 17 molecules at its disposal to develop in fixed-dose combinations as possible new HIV treatments. The new company will contract R&D services directly from GSK and Pfizer to develop these medicines.
The new company will also invest in early-stage research and discovery of HIV medicines, and will benefit from a new Research Alliance Agreement with GSK and Pfizer.
Under this new alliance, GSK and Pfizer will continue to conduct discovery research and development into HIV medicines and the new company will invest in this activity and will have exclusive rights of first negotiation in relation to any new HIV-related medicine developed by either GSK or Pfizer.