GSK has a hard time convincing investors because activist Eliot is in hiding

According to leading investors, Emma Walmsley, CEO of GlaxoSmithKline, is struggling to attract key shareholders after Elliott Management incorporated standards for radical change in the pharmaceutical group.

On the eve of GSK Investor Day next week, activist investor Eliot sowed doubts about whether Wolsley should stay. transformation was planned for the band after it left its band Consumer health section last year.

One of the top 20 shareholders in the 20 said some investors were attracted to the change of management after discussions with Elliott that multi-billion pound sterling At GSK earlier this year. “Its origin is not healthcare, but the consumer.

Another major shareholder said that it turns out that Elliott does not want Walmsley to lead the pharmaceutical business և he և can և put forward a separate initial offer for the GSK vaccine division, breaking up the company more than planned. Eliot declined to comment.

At Wednesday’s event, shareholders are likely to ask whether GSK should spend that much on anti-cancer drugs, or whether it should strengthen its short-term pipeline to compensate for the loss of HIV exclusivity. a decade later or focus on next-generation therapies in five to 10 years.

Even shareholders who have yet to decide whether to support Elliott’s efforts are watching the investor’s day closely. A senior asset manager said they were “looking forward to Capital Markets Day” to hear Walmsley say.

The CEO of GSK will focus on the promise of a “new GSK” in his presentation, which kicks off a few days after the investor show, trying to prove that he has a clear vision to upgrade the drug pipeline if time allows.

GSK president Luke Myels, who runs the business, compared the company to AstraZeneca, where he previously worked, which was also back from oncology but is now making rapid progress.

“I think these things take time, and then I can remember meeting investors with Astra; I was challenged to make progress in oncology,” he said. “I think it’s about choosing the right assets, moving forward. And we have a number of opportunities. ”

Walmsley will offer the company’s first long-term financial forecast, detail the future of its dividend policy, present its decision to dismantle the consumer health unit, make a preliminary public offering, or simply push it out.

It will be difficult to please all shareholders who are different from investors who want to see a consumer business IPO to fund investments in innovative drugs, until concerns that the listing will simply mean they will have to repurchase the shares.

“I want to know what the promise of the gas pipeline comes from.” [have] “I do not want to have to buy it to confirm their balance sheet,” said the second shareholder.

GSK Board և Executive Team participated in the meeting with the top 40 shareholders.

“The shareholders are telling us that they are very supportive of our strategy, they want us to continue to deliver it, not to deviate,” the company said.

Additional report by Arash Masudi

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