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GlaxoSmithKline will focus on vaccines and specialty medicines while spinning off consumer healthcare business.
GlaxoSmithKline (GSK) announced on June 23, 2021, plans to establish a “New GSK” that will focus on vaccines and specialty medicines with a planned “demerger” with its consumer healthcare business in mid-2022.
Citing efforts since 2017 to strengthen the company’s R&D and commercial execution, as well as structural and cultural changes, Chief Executive Officer Emma Walmsley said in a statement: “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.”
In late 2018, GSK and Pfizer announced a merger of consumer healthcare product brands with the intention to spin off the business to a separate company within three years.
With an emphasis on developing vaccines and specialty medicines, the company anticipates sales in 2031 for New GSK of £33 billion ($46.1 billion) with a focus on infectious disease, HIV, oncology, and immunology/respiratory therapeutic areas. A new General Medicines group, which will contain all of the company’s primary care brands including established products and the inhaled respiratory portfolio, will be “optimized for profitability and cash generation to support investment in Vaccines and Specialty Medicines. As part of this approach, further streamlining of the portfolio is expected through divestment or partnering of non-priority brands,” the company reported in a press statement.
The consumer healthcare business will have a portfolio which generated more than £10 billion ($14 billion) in 2020.