Debt Is the Tonic in GSK and Pfizer’s Big Deal

Debt Is the Tonic in GSK and Pfizer’s Big Deal

Pharma giants’ new joint venture is smart provided it can handle a high debt load once spun off

✒ “The partners want to load the business with net debt worth 3.5 to 4 times earnings before interest, taxes, depreciation and amortization before the spinoff, making it among the most highly leveraged consumer assets… the plan will only work out if the business is in good health. Even more than most deals, this one will be all about execution.”