GSK-Novartis deal triggers global media pitch
GlaxoSmithKline is conducting a global review of media planning and buying for its consumer healthcare brands, and it comes as no surprise, gaven the company’s recent asset swap with Norvartis.
In March, GSK and Norvartis closed on a $20 billion deal in which GSK absorbed Norvartis’ consumer brands and vaccines, and Norvartis took on GSK’s cancer drugs.
As a result of the deal, GSK employed no less than three media agencies on its consumer business (PHD, MediaCom and Starcom), setting the stage for a consolidation among roster shops. Global media spending on the account approaches $900 million.
Starcom, which previously worked for Norvartis, is not participating in this contest, leaving GSK U.S. shop PHD against MediaCom, which works for GSK in overseas markets, sources said. In a statement, GSK thanked Starcom for its work on Novartis’ brands.
The two-horse race is in its late stages, with final presentations scheduled for this week, according to sources.
The agencies referred calls to GSK, which confirmed the search. The process is expected to conclude by the end of the month.
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