The head of GSK ignores concerns about leadership while defining plans
GSK chief executive Emma Walmsley has backtracked on concerns about her leadership, saying she is a “change agent” who is committed to transforming the UK drug manufacturer after the formation of the consumer health division.
Under pressure from the US hedge fund Elliott Management, Walmsley set its sights on focusing on £ 33bn in sales by 2031 and exceeding the expiry of key patents for HIV medicines by the end of the decade.
Over the next five years, the company expects annual sales growth to be more than 5 percent and operating profit growth to be more than 10 percent.
Walmsley declined to say whether Elliott saw the plan, saying GSK is “always keeping its ears open” to recent and long-term shareholders. Elliott has taken a billion pounds into the company this year and he gained some support I thought he couldn’t be the right CEO at GSK.
Asked if he should run GSK after the spin-off, despite running the consumer business, he said: “I won’t spend time talking about all the things I don’t do. I’m a change agent. I’m a business leader. And I’m very happy with GSK’s new plans.”
The low-end GlaxoSmithKline will maintain its stake in its consumers ’divisional health department, which will then be able to sell fuel to its drug investment. GSK will dissolve at least four-fifths of its 68% consumer joint venture with Pfizer on the London Stock Exchange next year, but wants to keep it as much as 20 percent by making money on the open market by selling “on time”. before the division of the division.
Walmsley said the proposal is “very, very shareholder.”
The measure is a compromise because some shareholders were reluctant to buy shares in the initial public offering, while others asked GSK to raise more money to improve its pipeline for mergers and acquisitions or for the development of internal drugs.
The company has warned that it will cut the dividend after saving next year’s spin-off to save investment funds as it loses the consumer unit that generates the money.
The group will make up the dividend that GSK and consumer health care expect to have 55p together next year. The new pharmacist will pay a dividend of 4523 in 2023 and will opt for a progressive dividend policy.
Shares of GSK, up 6 per cent last year, rose 2.1 per cent to 1,424.40p at lunchtime in London.
“I am very aware that GSK’s shares have been short-lived for a long time,” Walmsley said. “The transformation that has taken place over the last four years creates a completely different platform for growth.”