GlaxoSmithKline shareholder Woodford Investment Management pushing for break-up
GlaxoSmithKline [LON: GSK] (GSK) shareholder Woodford Investment Management is urging the FTSE-100 pharmaceuticals company to consider a break-up, Sky News reported.
The exclusive report cited insiders speaking on Saturday, 24 October who said Woodford Investment Management founder Neil Woodford has discussed the issue in private with GSK Chairman Philip Hampton.
Woodford wants GSK to formally look into splitting of its dermatology business, its consumer healthcare arm Stiefel and its HIV unit ViiV from its vaccines and medicines division, according to the report.
It is understood that Woodford and Hampton have scheduled another meeting to discuss the break-up proposal and that Woodford has also sounded out other key GSK shareholders, the item noted.
GSK has indicated that it wants to shift its focus from prescription drugs to consumer products and vaccines, the article noted.
Several large GSK investors are still supportive of CEO Andrew Witty’s strategy, the report said, quoting one investor who said it would be premature to examine GSK’s structure as the upside from the company’s deals with Swiss counterpart Novartis has not yet been delivered.
GSK has acquired Novartis’ vaccines business, sold its oncology arm to Novartis and formed a consumer healthcare venture with the Swiss company, the item noted.
The report went on to cite another person familiar with GSK who said the company’s core pharmaceuticals and vaccines arm had been fully integrated and would, therefore, make a break-up a more difficult process.
It is not known exactly how large of a stake Woodford holds in GSK, but it is less than the 5% that would prompt Woodford to formally disclose the shareholding, the article said.
Spokespersons for GSK and Woodford refused to comment, according to the report.
GlaxoSmithKline's market capitalisation stood at GBP 66.62bn (EUR 92.09bn) at the close of trading in London on Friday, 23 October.
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Source Sky News