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GSK Chairman Philip Hampton has been in discussions with the
group's biggest shareholders about the creation of a standalone
pharma and vaccines company in the medium term, the FT reported,
citing sources. The move could happen within two or three years,
the report said. https://on.ft.com/2mwBuYT
One of the company's top ten shareholders, whom the FT did not
name, acknowledged having conversations with the GSK chairman,
adding that shareholders "don't quite believe in the company."
Some investors have long called for the group's break-up,
arguing that it would crystallize value for component businesses
and that there are limited synergies between consumer and
pharma.
A GSK spokesman said the group's priority is to improve the
performance of its pharmaceutical business, especially research
and development. The company is set to outline its new approach
for the division next week.
The company's "3 business structure" offers stability to its
earnings and helps in free cash flow generation, the spokesman
said in a statement.
"But as we have consistently said this is subject to each
business continuing to perform competitively and having access
to capital. We are pleased to have completed the buyout of the
Consumer Healthcare business for which we see very good
potential for growth and have set an increased margin target for
that business to achieve by 2022," according to the statement.
In April, GSK said it was divesting its rare disease gene
therapy drugs to private biotech company Orchard Therapeutics.
Last year, GSK Chief Executive Emma Walmsley had announced a
wide-ranging overhaul designed to narrow the focus of drug
research and improve returns in the core pharmaceuticals
business.
(Reporting by Kanishka Singh in Bengaluru and Ben Hirschler in
London; editing by Louise Heavens)
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