Why GlaxoSmithKline and Pfizer are spinning out their consumer health business

GlaxoSmithKline and Pfizer are among the drugmakers that are seeking to offload non-core units in an effort to increase focus, Business Insider reported Friday.

Last month, GlaxoSmithKline and Pfizer agreed to combine their consumer healthcare businesses and spin the combined business out as an independent entity.

GlaxoSmithKline chief strategy officer David Redfern noted it is becoming increasingly difficult to have such businesses while prioritising the development of new therapies.

The news comes after Novartis sold its stake in a consumer healthcare joint venture with GlaxoSmithKline to the UK firm last year.

Meanwhile, Bristol-Myers Squibb received an offer for its consumer healthcare unit last month and later announced an agreement to purchase Celgene for $74 billon.

"Because we've now lit the fuse on when we're going to spin it, it puts real pressure on the pharma business to make progress really fast," Redfern remarked.

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