GlaxoSmithKline CEO Struggling To Get Key Shareholders In Her Favor Amid Pressure From Hedge Fund Activist Elliott Management

Reuters

GSK to boost spending power of pharma business post break-up

GlaxoSmithKline will lay out plans to boost the spending power of its research-focused pharmaceuticals business at an investor day on Wednesday, as analysts call on the British drugmaker to boost drug development prospects with takeovers or alliances. New GSK, the pharma business to be separated from its consumer product operations next year, will cut dividend payouts and shift some debt to the consumer unit, leaving scope for investments to revive its sluggish stock market performance. Luke Miels, chief commercial officer at GSK, told Reuters that the market was underestimating the company’s value “both in terms of our growth prospects with the products that we have in the market now, and also our (drug development) pipeline”.

Advertisement

Leave a Comment