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    Merger of Glaxo India Limited and Smithkline Beecham Pharmaceuticals (India) Limited

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    alekyaiiii
    Glaxo India Limited and SmithKline Beecham Pharmaceuticals (India) Limited merged to form GlaxoSmithKline Pharmaceuticals Ltd. The merger created the largest pharmaceutical company in India with a combined 8.6% market share. It also formed the third largest pharmaceutical company globally. The main reason for the merger was to more effectively and efficiently discover and develop new medicines through R&D synergies and cost savings. The merger generated annual cost savings of $1.63 billion globally, with 25% reinvested in research.

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    Merger of Glaxo India Limited and Smithkline Beecham Pharmaceuticals (India) Limited

    Uploaded by

    alekyaiiii
    30 views10 pages
    Glaxo India Limited and SmithKline Beecham Pharmaceuticals (India) Limited merged to form GlaxoSmithKline Pharmaceuticals Ltd. The merger created the largest pharmaceutical company in India with a combined 8.6% market share. It also formed the third largest pharmaceutical company globally. The main reason for the merger was to more effectively and efficiently discover and develop new medicines through R&D synergies and cost savings. The merger generated annual cost savings of $1.63 billion globally, with 25% reinvested in research.

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    Glaxo India Limited and SmithKline Beecham Pharmaceuticals (India) Limited merged to form GlaxoSmithKline Pharmaceuticals Ltd. The merger created the largest pharmaceutical company in India with a combined 8.6% market share. It also formed the third largest pharmaceutical company globally. The main reason for the merger was to more effectively and efficiently discover and develop new medicines through R&D synergies and cost savings. The merger generated annual cost savings of $1.63 billion globally, with 25% reinvested in research.

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    30 views10 pages

    Merger of Glaxo India Limited and Smithkline Beecham Pharmaceuticals (India) Limited

    Uploaded by

    alekyaiiii
    Glaxo India Limited and SmithKline Beecham Pharmaceuticals (India) Limited merged to form GlaxoSmithKline Pharmaceuticals Ltd. The merger created the largest pharmaceutical company in India with a combined 8.6% market share. It also formed the third largest pharmaceutical company globally. The main reason for the merger was to more effectively and efficiently discover and develop new medicines through R&D synergies and cost savings. The merger generated annual cost savings of $1.63 billion globally, with 25% reinvested in research.

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    Download as pptx, pdf, or txt
    of 10

    Merger of

    Glaxo India Limited and SmithKline


    Beecham Pharmaceuticals (India)
    Limited
    By
    TVL Alekya- DM-05-060
    Introduction
    GlaxoSmithKline Pharmaceuticals Ltd is a Indian
    subsidiary of GlaxoSmithKline plc, one of the world's
    leading research based pharmaceutical and healthcare
    companies.
    It product portfolio includes prescription medicines
    and vaccines.
    Reason: The main reason for amalgamation is to
    enhance the platform to discover and develop new
    medicines more effectively and efficiently.
    Glaxo India Limited
    It was founded 13th November 1924 in India under the
    name of H.J.Foster & Co. Limited as an Agency House
    for distributing Baby Food Glaxo, Joseph Nathan & Co.
     In 1950, It changed its name to Glaxo Laboratories (I)
    Ltd.
    Smithkline Beecham Pharmaceuticals

    The company was incorporated on 11th April, as a private


    limited company under the name and style of `Eskayef
    private limited' to acquire by purchase, amalgamation or
    otherwise the business of the Indian branch of Eskaylab
    Limited, a company incorporated in England.
    The main objects and activities of the company include
    the manufacture of human and veterinary
    pharmaceuticals, bulk drugs skin care products,
    veterinary feed supplements and marketing of bio-
    analytical and diagnostic instruments.
    How it happened
    Moody's Investors Service (Moody's) has put Glaxo
    Wellcome's AA2 rating under review, for a possible
    downgrade.
    At the same time, it has placed Smithkline Beecham's
    AA3 rating under review, for a possible upgrade.
    The review has been promoted by the announcement
    of a merger agreement between Glaxo Wellcome and
    SmithKline Beecham
    Type of merger
    It is a horizontal merger.
    Common therapeutic areas include vitamins,
    hoematinics and antibiotics though both companies
    have near-complementary products in these areas.
    Drugs for cardiovascular ailments and central nervous
    system ailments, though these perceived limitations
    will be filled by both partners' strong research and
    development pipeline.
    Benefits
    Formation of the largest pharmaceutical company in
    India with a combined market share of about 8.6 per
    cent.
    The combine would control 7.5 per cent of the global
    pharmaceutical market.  Third largest company in the
    world in terms of market capitalization at about $1.66
    billion.
    Potential cost savings, R&D synergies and benefits of a
    strengthened pharmaceuticals sales force
    Facts
    To take advantage of Indian laws (allowing local companies
    to produce cheaper copies without paying royalties)
    Some of the factors likely to speed the global merger wave
    are the expiring of patents on top-selling drugs, the need
    for companies to cut overall costs in order to put more
    money into research, and pressure from governments and
    the public to cut the cost of prescription drugs
    It is estimated that it takes about $1bn to develop a new
    drug. The cost of such investment - and the potential for
    cost savings by combining research - is a key driving force
    in the merger wave
    Result
     Glaxo and SmithKline said their combination would
    generate annual cost savings of 1 billion pounds ($1.63
    billion) after the third year, of which 25 percent will be
    reinvested in research and development.
    Finally, the enhanced basket of products of
    GlaxoSmithKline, India will help serve patients better
    by strengthening the hands of doctors by offering
    superior treatment and healthcare solutions.
    Yo u
    a n k
    T h

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