GlaxoSmithKline is consolidating all Pfizer consumer healthcare media with Publicis Groupe following a joint venture the pharmaceutical behemoths announced late last year.
Publicis Media, which fought off competition from multiple holding companies, will service the work with platformGSK—a bespoke shop it launched after winning the $1.7 billion GSK media business in what was lauded as the biggest media review of 2018.
The Pfizer consumer healthcare media is estimated to be valued at around $400 million, 20% of its global media spend ( $1.8 billion), said Olivier Gautier, founder and CEO of independent research firm COMvergence.
A GSK spokesperson told Campaign US: "GSK periodically reviews its media buying arrangements to ensure they are continuing to deliver on our strategy and bring the best value and innovation to the business.
"Following the close of the JV with Pfizer Consumer Healthcare and a thorough analysis, GSK Consumer Healthcare will consolidate all legacy media agency alignments with Publicis Media, as an extension of the partnership announced in 2019. The combined buying power of the two entities will provide significant benefits."
GSK and Pfizer announced the joint venture in December last year.
The move brings together brands such as Panadol, Anadin, Aquafresh and ChapStick under one roof with the creation of a new company with annual sales of $12.7 billion.
U.K.-based GSK holds a majority stake in the new Pfizer consumer healthcare venture.
At the time, GSK said the spin-off is a "compelling opportunity" to build on the recent buyout of Novartis’ stake in its consumer healthcare business, as well as bolstering its research and development pipeline.
The joint venture is expected to save around $650M in costs by 2022, with 25% of savings intended to be reinvested in the business.
Publicis created a dedicated agency unit for GSK after winning its global media in October last year. platformGSK brings together different expertise from across Publicis Media in healthcare, consumer strategy and digital business transformation.
A Publicis Media spokesperson said: "We are thrilled to extend our partnership with GSK to span the legacy Pfizer Consumer Healthcare business as well. A testament to the strength of the platformGSK model and the work we are delivering together, we look forward to driving further transformation and results across the consolidated business."