Business

GSK Consumer General Manager plans to make deals after leaving the pharmacy


The CEO of GSK Consumer Health Business expects the newly formed company to enter into deals in areas of growth, such as vitamins in the mature segment for consolidation.

Speaking ahead of Investor Day, detailing the split between GSK’s pharmacy and consumer divisions, Brian McNamara told the Financial Times that businesses would be able to make smaller deals despite being burdened with debt.

He said the new company will be called forward spin-off next year. seeks to sell more brands directly to consumers online, convert more over-the-counter over-the-counter drugs նել Expand in China.

“This side of the portfolio of vitamin supplements continues to have opportunities,” he said. “Many opportunities in that area are not mass achievements. “I believe we would be able to do that if it made sense for the business to provide the right returns.”

GSK comes under pressure from investors on June 23 to impress US hedge fund Elliott Management multibillion fund to lobby for change in the company. Some shareholders have questioned whether Emma Walmsley, GSK’s chief executive, who previously ran the consumer business, should lead the new pharmaceutical company as planned, as they worry she will not be able to recover. Poor piping,

The Consumer Health Business, which owns brands such as Centrum Vitamins and Sensodyne Toothpaste, is a joint venture with Pfizer, established in late 2018 և to be engraved ամ by the summer of 2022. It also includes Novartis’ consumer health business GSK bought The Swiss pharmacist left the joint venture in early 2018.

On Strategy Day, GSK will tell investors how it plans to build a spinout, which some analysts say will make the consumer health business a target. In 2020, revenues increased by 4% to 10 billion pounds, but for that, the net debt to adjusted income to interest, taxes, depreciation and depreciation will be 3.5 to 4 times.

McNamara said the split would allow shareholders to take advantage of the “disorder” in the business. “Frankly, the separation means for us that we can act as an independent company, we can define our strategy, our capital allocation priorities,” he said. “This is not going to be a small company, it will be somewhere between 20 and 20 FTSEs.”

He added that there is still an opportunity for “consolidation” in the sphere. GSK is the largest participant in the fragmented consumer health industry, which includes products such as painkillers, vitamin և mineral supplements, cold remedies and other over-the-counter medicines at 9.1% of the market, according to Euromonitor.

Its three biggest competitors are pharmaceutical companies Johnson & Johnson, Bayer և Sanofi, but healthcare has become a growing area for consumer goods companies such as Reckitt Benckiser և Procter & Gamble.

Vitamins, minerals և supplements received a special boost from the epidemic, with GSK reporting that sales in 2020 increased by 16% compared to the previous year.

Multinational companies are spoiling add-on brands with Nestlé this year agreeing Buy the major brands of The Bountiful, the American company that produces Bounty vitamins for $ 5.75 billion.

“This consumer’s interest և focus on their personal health: well-being. “It really pushed for an incredible increase in vitamin minerals and supplements,” said McNamara.

He added that the company was “looking for a lot of brands” that could sell directly to consumers after ChapStick lip balm was launched last year on the US website, looking at direct sales as a “first-party sales data opportunity”.



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