share this article!

(Reuters) – LONDON, July 1 (Reuters) – As it disclosed on Thursday that it had purchased a major interest in the British pharmaceuticals group, activist investor Elliott said GlaxoSmithKline (GSK.L) should examine its leadership and contemplate an outright sale of its consumer healthcare unit. GSK announced plans this week for a separate IPO of its consumer health division, which includes brands including Sensodyne toothpaste and Advil medicines, next year, in the company’s biggest shake-up in two decades. find out more Elliott’s response had been anticipated following news in April that it had purchased a multi-billion-pound investment in the company. Elliott put pressure on GSK Chief Executive Emma Walmsley in a letter to the GSK board, outlining five recommendations, but stopped short of calling for her to go. GSK’s board, according to Elliott, needed more biopharmaceuticals and scientific experience before deciding on its leadership. “Once the GSK Board has been rebuilt, this Board will be in a better position to assure the greatest executive leadership for both new entities,” it stated. “To be clear, we feel that current management should be retained until a choice on new leadership is reached.” GSK will be able to focus on its core pharmaceuticals and vaccines business, which has been hampered by a lack of fast-growing items and patients deferring treatment because to the COVID-19 pandemic, putting pressure on its stock. Walmsley, who has been CEO of GSK since 2017, stated last week that the company’s stock has underperformed for a long time and that she intends to continue on to oversee the pharma and vaccines division. “According to our estimate, GSK has the potential to create up to 45 percent upside in its share price in the years leading up to its full separation, and substantially more in the years beyond,” Elliott added. It also recommended GSK to consider selling the consumer health company, which is a joint venture with Pfizer (PFE.N), in its entirety if the chance arose. “Any strategic opportunity to sell CH (consumer health) should be sought with zeal and followed by a clear plan for how GSK would use the earnings,” Elliott added. Keith Weir wrote the story, while David Goodman and Jason Neely edited it. The Thomson Reuters Trust Principles are our standards./nRead More

share this article!