Glaxo Smith Kline may start a separate consumer business
It may not be a surprise if Glaxo Smith Kline breaks up its business to focus a division solely on the consumer healthcare niche.
GSK CEO Sir Andrew Witty said that he sees a breakup of the group would be sensible as a standalone consumer business could add more value to the company. He also said that the strategy he has planned for the company is able to help the company grow more considering the $20 billion deal it entered into with Novartis in April this year.
The deal unites both companies to start a joint venture that will focus on the consumer healthcare market.
“Through our transaction with Novartis we are making all of our businesses stronger together and stronger as individual components. This will deliver enhanced value through the existing structure and it delivers enhanced optionality for the long run,” said Witty.
He also said that he is willing to divide the group into two standalone businesses in future when it seems to be a better option. While sharing his ideas and strategies, he also said that it might not happen in the near future as the current composition of pharmaceuticals and over the counter drugs is bringing in satisfactory revenue for the company in emerging markets.
GSK has faced several troubles in the recent past in light of the second quarter results shared last week. In addition to it, the company was also facing legal problems regarding bribery scandals in China and also in countries such as Poland, Syria, Lebanon, and Jordan.
Chinese doctors accused the company last year saying it bribed doctors to prescribe its medicine to patients.
“It really saddens me every time I see something like this,” said the company’s CEO. “Sometimes when you see allegations you think, ‘what were those people thinking when they thought that would be a good idea?’