World's two biggest drug companies GlaxoSmithKline PLC and Pfizer Inc. will join hands to create a new company exclusively for developing and selling of HIV medicines. Both companies made announcement of the new venture on Thursday. The name of the company will be announced after the finalization of the deal. The new company will be based in London.

Glaxo Chief Executive Andrew Witty said: "The combination of a broad current revenue base and a new diverse pool of pipeline assets provides a significant platform to invest in developing and delivering new HIV medicines."

Witty said he expects $90 million, or 60 million pounds, in savings - mostly coming next year - from cutting administration and marketing overlaps. Research and development operations would be basically unchanged.

Glaxo will have 85 percent and Pfizer have 15 percent share by revenue. Initially Glaxo will invest about $373 million, or 250 million pounds, nearly 90 percent in the new company.  

Witty added: "It's going to have two parents out there with, I think, a very rapid decision-making mechanism to allow it to be funded for what it needs to do. It will also have the flexibility to do other deals and license in other (drugs)."