Britain’s biggest drugs company GlaxoSmithKline and US rival Pfizer announced Thursday their intention to create a new company with headquarters in London to manage their HIV operations.

 

The deal is seen as a success as it allows the two companies to blend Glaxo’s portfolio of HIV treatments currently on the market with Pfizer’s more robust pipeline of drugs in development.

 

“The combination of a broad current revenue base and a new diverse pool of pipeline assets provide a significant platform to invest in developing and delivering new HIV medicines,” Glaxo Chief Executive Andrew Witty said during a conference with analysts on Thursday.

 

Pfizer Chief Executive Jeff Kindler was also confident about the new company: “By combining Pfizer’s and GlaxoSmithKline’s complementary strength and capabilities, we are creating a new global leader in HIV and reaffirming our ongoing commitment to the treatment of the disease.”

 

Glaxo will initially hold an 85 percent equity interest in the new company, with Pfizer holding the remaining 15 percent.

 

Despite improved access to retroviral treatment and better screening methods, the AIDS epidemic claimed an estimated 2 million of lives in 2007. According to current estimates by UNAIDS and WHO, by the end of 2007, there were 2.7 million new infections. More than 1 million people are infected with HIV in the United States.