GSK struggles to convince investors because activist Elliott is lurking

According to key investors, GlaxoSmithKline CEO Emma Walmsley is struggling to acquire major shareholders after Elliott Management has attracted converts to radically transform the pharmaceutical group. ..

Ahead of next week’s GSK Investor Day, activist investor Elliott questioned whether Walmsley should continue to move forward. conversion Planned for the group after spinning off Consumer health Last year’s division.

One of the top 20 shareholders said some investors were attracted to a change of management as a result of discussions with Elliott. Billions of pounds of stock At GSK earlier this year. “Her background lies in the consumer, not the health care, which may be the reason,” he said.

Another major shareholder said Elliott didn’t want Walmsley to lead the pharmaceutical business, pushing for an initial public offering of GSK’s vaccine unit and potentially splitting the company further than planned. It was. Elliott declined to comment.

At the event on Wednesday, shareholders will strengthen their short-term pipeline to compensate for the loss of some HIV exclusivity, whether GSK should spend so much on catching up antineoplastics. You may ask if you should try taking the drug in the second half of 10 years or focus on the next generation of treatments after 5 to 10 years.

Even shareholders who have not yet decided whether to support Elliott’s efforts are watching Investor Day carefully. “I’m very much looking forward to the day of the capital markets,” said one large asset manager, listening to Walmsley.

GSK’s CEO focuses on the “new GSK” promise, focuses on the “new GSK” promise, and has a clear vision for her to update her pharmaceutical pipeline if she has time. I will try to prove that.

Luke Miles, president of GSK, a commercial business, compared the company to AstraZeneca, which was previously behind in oncology but is now growing fast.

“I think these things will take some time, and I can remember meeting investors and Astra and being challenged with the advancement of oncology,” he said. “I think it’s important to choose the right assets and move forward, and there are many opportunities.”

Walmsley provides the company’s first long-term financial forecast, detailing the future of its dividend policy and presenting her decision on whether to go public in the consumer healthcare sector or simply spin off.

From investors who want an IPO in their consumer business to fund their investment in innovative medicines to investors who are concerned that listing simply means they have to buy back their shares. It will be difficult to please all shareholders.

“I want to know what’s coming out of the promise from the pipeline. [have] I already own it and I don’t have to buy it to strengthen my balance sheet, so I’ve confirmed that the consumer business will be split rather than an IPO, “said the second shareholder. It was.

GSK’s board and management meet with the top 40 shareholders for the event.

“Shareholders say they are very supportive of the strategy we have set and want to achieve it without distraction,” the company said.

Additional report by Arash Massoudi

GSK struggles to convince investors because activist Elliott is lurking

Source link GSK struggles to convince investors because activist Elliott is lurking

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