GlaxoSmithKline and Pfizer team up to form HIV company

Pharmaceutical companies GlaxoSmithKline and Pfizer today announced an "innovative agreement" to pool their HIV assets creating a new world-leading, specialist HIV company.

The deal will see the drug giants combine their existing HIV product and their pipelines with GSK holding 85% of the company and Pfizer 15%.

The deal will be marginally dilutive to GSK earnings in the first two years but in a video interview Group CEO Andrew Witty said there were longer term benefits for GSK shareholders.

"Today we own 100 per cent of a pipeline with three assets in it. Tomorrow we'll own 85 per cent of a pipeline with somewhere between five and seven assets in it."

The GSK boss said he was also committed to maximising the cost savings from the combination.

The interview and transcript are available now on http://w3.cantos.com/glaxosmithkline.

It's free to view. All you need to do is register at http://www.cantos.com. Cantos.com, the online financial broadcaster, features in-depth interviews, documentaries and webcasts with senior company executives. If you would like to contact us, please email [email protected] or phone +44-207-936-1333.