RESEARCH TRIANGLE PARK – Emma Walmsley, the CEO of drug giant GlaxoSmithKline, is rolling out her vision for a “new GSK” as plans proceed to split the company. Walmsley says she will remain CEO of the pharma and vaccines business after the spin-off of its consumer healthcare operations.
This is big news for the Triangle since GSK has a major presence in the region and a manufacturing plant in Zebulon. It also owns the majority stake in drug firm ViiV, which has a significant R&D operation in the Triangle.
“The benefits of the huge transformation we have driven since 2017 are now clear. We have strengthened our R&D and commercial execution, and transformed our group structure and capital allocation, while driving a profound cultural change with new leadership.,” Walmsley explained Wednesday.
“Together, we are now ready to deliver a step-change in growth for New GSK and unlock the value of Consumer Healthcare. With world class capabilities across prevention and treatment of disease, New GSK is exceptionally well positioned to positively impact people’s health and to deliver strong performance and value to shareholders through the decade.”
GSK plans to spin off its consumer healthcare operations as a separate venture. Reuters notes the move witll “deliver an $11 billion windfall and other financial benefits for its underperforming drugs business.”
Plans for the move were first discussed three years ago.
“The split planned for the middle of next year will allow GSK to focus on its core drugs and vaccines business, which has been hit by a lack of fast-growing products and patients deferring treatments due to the COVID-19 pandemic, weighing on its shares,” Reuters added.
At a news conference, Walmsley said “I am very aware that GSK shares have underperformed for a long period … “Together, we are now ready to deliver a step-change in growth for New GSK and unlock the value of Consumer Healthcare.”
