Shionogi Raises ViiV Stake to 21.7% Following Pfizer's Exit

• Shionogi is paying $2.13 billion for newly issued shares, increasing its stake from approximately 10% to 21.7% of ViiV Healthcare
• Pfizer will receive $1.88 billion for its 11.7% holding as it faces projected revenue headwinds until 2029 from COVID product sales decline and patent expirations
• GSK established ViiV Healthcare with Pfizer in 2009, with Shionogi joining as a shareholder in 2012; the deal simplifies the venture's ownership structure

Summary: Shionogi Raises ViiV Stake to 21.7% Following Pfizer's Exit

Key Transaction Details:

Pfizer is exiting its stake in ViiV Healthcare, an HIV specialist joint venture, in a $1.9 billion deal expected to close in Q1 2026. Japan's Shionogi will more than double its ownership to 21.7% by paying $2.13 billion for newly issued shares, while GSK will retain majority control at 78.3%.

Financial Breakdown:

• Pfizer receives $1.88 billion for its 11.7% holding
• GSK receives a $250 million special dividend as ViiV cancels Pfizer's stake
• Total deal value: $1.9 billion to Pfizer

Strategic Context:

The divestment aligns with Pfizer's strategy to streamline operations amid financial headwinds. Pfizer warned in December of challenging years ahead through 2026, citing declining COVID-19 product sales, negotiated U.S. government price cuts, and key patent expirations. The company doesn't expect revenue growth to resume until 2029.

Company Background:

GSK established ViiV Healthcare with Pfizer in 2009, focusing on HIV treatments. Shionogi joined as a minority partner, and will maintain one board seat through Director John Keller, who has served since 2012.

Market Implications:

The transaction simplifies ViiV's ownership structure while allowing Pfizer to raise capital during a difficult financial period. For Shionogi, the increased stake represents a stronger position in the HIV treatment market. The deal requires regulatory clearances before completion.

This restructuring reflects broader pharmaceutical industry consolidation trends as companies optimize portfolios and address revenue pressures from patent cliffs and pricing dynamics.