GSK announces split into two new companies
A London pharmaceutical firm has announced that the company will be split in two over the course of the next two years.
GlaxoSmithKline (GSK), which produces prescription medicines, vaccines and consumer healthcare products, will split into two companies, one biopharma firm focusing on research and development, and the other focusing on consumer healthcare.
The company said that although it saw a 10 per cent rise in sales, it predicts a decline in earnings for 2020.
Emma Walmsley, CEO of GSK, said: “GSK delivered a good performance in 2019 with growth in sales and earnings, together with strong cash generation.
“We also made excellent progress in all three of our long-term priorities: Innovation, Performance and Trust, strengthening our pipeline, improving operational execution and reshaping the company.
“In 2020, our first priority remains Innovation, to progress our pipeline and support new product launches.
“Recent data readouts underpin our decision to further increase investment in R&D and these new products.
“At the same time, we are again focused on operational execution, including delivering a successful integration in consumer healthcare, and we are also preparing for the future, starting a new two-year programme to get GSK ready for separation.
“All of this aims to support future growth, deliver significant value creation, and set up two new leading companies in biopharma and consumer healthcare, each with the opportunity to improve the health of hundreds of millions of people.”
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