Why merger cost savings do not always reach consumers

A study of GSK and Pfizer's 2019 consumer-health combination in the Philippines estimates that the marginal cost of supplying Pfizer cough and cold medicines fell by 9.43%, yet the benefits were uneven. Pfizer's prices declined, while prices rose for GSK and rival Sanofi. The findings show why lower corporate costs and lower prices are related, but not the same thing.