GlaxoSmithKline is currently trading at 1545.60-higher by 6.7% as compared to the previous closing.
GSK CEO announced today that the company and Pfizer would combine their consumer health businesses in a joint venture with sales of 9.8 billion pounds, 68%-owned by the British company, in an all-equity transaction. The move will lead to the creation of a consumer health giant with a market share of 7.3%, well ahead of its nearest rivals Bayer, Johnson & Johnson, and Sanofi.
In addition, the company is planning to split into two businesses — one for prescription drugs and vaccines, the other for over-the-counter products — after forming a new joint venture with Pfizer's consumer health division.
The new joint venture with Pfizer is expected to generate total annual cost savings of 500 million pounds by 2022 for expected total cash costs of 900 million and non-cash charges of 300 million. The deal is also expected to boost adjusted earnings and free cash flow in the first full year after closing, which the drugmaker expects will occur in the second half of 2019.
On the technical front, the RSI is currently at 55.85% and suggests that the market can move in the upward direction. The current price is above the MA5 (1483.88). The current price is above the middle line of the Bollinger Bands and is heading upwards.