New GSK to deliver step-change in growth and performance

GlaxoSmithKline has announced New GSK, which will deliver step-change in growth and performance over next ten years, driven by a high-quality Vaccines and Specialty Medicines portfolio and late-stage pipeline. New GSK will keep a 20% stake in the consumer healthcare business. The Independent confirmed: “The unit will be listed on the London Stock Exchange as a separate business, and New GSK will sell off its remaining stake over time”

During the investors update, GSK provided details of its strategy, outlook for growth and plans to create shareholder value, following the planned demerger in mid-2022 of its Consumer Healthcare business. The resulting New GSK will be a growth company with new ambitions for patients and shareholders and an overarching purpose to unite science, talent and technology to get ahead of disease together.

GSK aims to have strategic focus to prevent and treat disease, with R&D leveraging science of the immune system, human genetics and advanced technologies, and its strengthened balance sheet post separation supports investment in growth. CEO Emma Walmsley said that New GSK will keep a 20% stake in the consumer healthcare business but will give the rest to shareholders.

New GSK will prioritise R&D and commercial investment in Vaccines and Specialty Medicines, which are expected to grow to around three-quarters of company sales by 2026. As part of its 2021-26 outlook, Vaccines is expected to grow sales at a high single-digit % CAGR and Specialty Medicines at a double-digit % CAGR.

The company is focused across four core therapeutic areas (TAs): Infectious Diseases, HIV, Oncology and Immunology/Respiratory. In addition, New GSK will remain open to opportunities outside these core TAs where there are scale opportunities rooted in immune science and genetic validation.

Capturing the increasing opportunities now seen across the prevention and treatment of disease offers significant scientific and commercial opportunities for New GSK. At the heart of this is the company’s R&D focus on the science of the immune system, human genetics and advanced technologies; and its world-leading capabilities in vaccine and pharmaceutical development.

The company currently has a pipeline of 20 vaccines and 42 medicines – many of which are potential best or first in class opportunities.

Walmsley said: “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. 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.”

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