GlaxoSmithKline and Pfizer to create joint HIV business

GlaxoSmithKline and Pfizer are to spin off their HIV drugs businesses into a new company to be headquartered in the UK. The business will be broader in scope than either company's existing HIV operations, with a 19% market share. Their combined sales were approximately £1.6bn (Euro 1.8bn) in 2008.

Dominique Limet, currently senior vice president and head of GSK's personalised medicine strategy division, will be chief executive of the new company and a member of its board.

The business will have a pipeline of six medicines, including four compounds in Phase II development. GSK will initially hold 85% of the new company and Pfizer 15%.

Andrew Witty, chief executive of GSK, said: "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."

Pfizer's chief executive Jeff Kindler added: "The new company can reach more patients and accomplish much more for the treatment of HIV globally than either company on its own."

The new company will have 11 commercialised products including Combivir, Kivexa and Selzentry/Celsentri.

The clear focus of the new business will be to invest in r&d of HIV treatments that improve adherence and overcome resistance to the virus.

Altogether, the new company will have 17 molecules at its disposal to develop as possible new HIV treatments. It will contract r&d services direct from GSK and Pfizer to develop these medicines.

The new business will also benefit from a new Research Alliance Agreement with GSK and Pfizer. Under this, GSK and Pfizer will continue to conduct r&d into HIV medicines and the new company will invest in this and have exclusive rights to any new HIV-related medicine developed by either GSK or Pfizer.

The new company will appoint a head of r&d. GSK and Pfizer will provide manufacturing and other services.