GSK on course to spin off Consumer Healthcare business mid 2022
Research-based pharmaceutical and healthcare company, GlaxoSmithKline plc. has revealed that the company is on track to demerge its Consumer Healthcare business.
The Consumer Healthcare business is a Joint Venture between GSK and Pfizer, with GSK holding a majority controlling interest of 68% and Pfizer 32%. GSK’s health brands include Sensodyne toothpaste, Panadol and Centrum vitamins.
Emma Walmsley, Chief Executive Officer, GSK said: “We have ended the year strongly, with another quarter of excellent performance driven by first-class commercial execution, and we enter 2022 with good momentum. This is going to be a landmark year for GSK, with a step-change in growth expected and multiple R&D catalysts, including milestones on up to 7 key late-stage pipeline assets. 2022 is also the year when we demerge our world-leading Consumer Healthcare business. At our capital markets event later this month, we will set out the future growth ambitions and highly attractive financial profile of this business, and the outstanding opportunity it provides for shareholders.”
In January, GlaxoSmithKline revealed that it had earlier received three unsolicited, conditional and non-binding proposals from FMCG giants- Unilever plc to acquire the GSK Consumer Healthcare business for a total acquisition value of £50 billion comprising £41.7 billion in cash and £8.3 billion in Unilever shares.
Disclosing that the company rejected all three proposals on the basis that they fundamentally undervalued the Consumer Healthcare business as well as its future prospects, GSK announced: “The Board of GSK is strongly focused on maximizing value for GSK shareholders and has carefully evaluated each Unilever proposal. In doing so, the Board and its advisers assessed the proposals relative to the financial planning assessments completed to support the proposed demerger of the business in mid-2022, including the sales growth outlook set out below.”
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