Pfizer/GSK Unveiling HIV Joint Venture As ViiV Healthcare

Pfizer and GlaxoSmithKline on Nov. 3 will formally unveil their much-ballyhooed HIV joint venture, announced last April.

The deal combines Glaxo and Pfizer's marketing muscle and existing HIV products. By merging the pipelines and infrastructures, the drugmakers create a stronger operation then either could operate on its own, especially since the HIV market was previously not a priority for either.

But the venture could become a cash cow for both companies, especially if a spin-out occurs down the road. Meanwhile, the venture, named ViiV HealthCare, could dominate 19 percent of the global HIV market and generate about $2.4 billion in sales in its first year of operations, based on 2008 results.

Besides six development stage products, ViiV will market 11 medicines, including Pfizer's CCR5 inhibitor Selzentry (maraviroc) and GSK's lamivudine/zidovudine combination Combivir (Also see "Glaxo and Pfizer Form HIV Venture, But A Spin-Off Could Be In The Wings" - Pink Sheet, 20 Apr, 2009.).

The joint program is expected to have about 500 employees.

As disclosed in the April announcement, the venture will be led by GSK Senior VP Dominique Limet, who has overseen the company's personalized medicine strategy. It will be based in GSK's offices in London and Research Triangle, N.C.

-Ed Silverman ([email protected])