Drug merger creates marketing giant

Goetzl, David
January 2000
Advertising Age;1/24/2000, Vol. 71 Issue 4, p6
Trade Publication
The article reports on the merger of pharmaceutical companies Glaxo Wellcome and SmithKline Beecham as of January 2000. It was learned that the desire to forge a potent marketing machine propelled the $76 billion merger. Glaxo has been one of the leaders in experimenting with direct-to-consumer (DTC) advertising. The merger gives Glaxo the knowledge SmithKline already has about the front of the drugstore, where popular SmithKline products such as Tums and Aquafresh are sold. Glaxo was the second-biggest DTC spender through the first eight months of 1999 with $122 million, according to consultancy IMS Health. The companies share both Jordan McGrath Case & Partners/Euro RSCG, and Grey Advertising.


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