GSK considers consumer health spin-off

Some GSK shareholders have been discussing with the board how the financial dynamics of consumer and pharma are quite different, and that a consumer health spin-off and standalone pharmaceutical and vaccines group would make good business sense.
GSK said: “Our number one priority for the Group is improving performance in the Pharmaceuticals business, especially Pharma R&D, and this week we will set out our new approach to R&D. Our position on the Group structure is unchanged. We believe the three-business structure of the Group offers significant opportunities in the current healthcare environment and provides the Group with more stability to our earnings and helps in free cash flow generation. But, as we have consistently said, this is subject to each business continuing to perform competitively and having access to capital. We are pleased to have completed the buyout of the Consumer Healthcare business for which we see very good potential for growth and have set an increased margin target for that business to achieve by 2022.”