The head of GSK consumers distributes the plans after they separate from the pharmacy

GSK, the CEO of the Consumer Healthcare Business, hopes to start a business in a mature sector to consolidate growth areas, such as vitamins.

Speaking in detail about the split between GSK’s pharmaceutical and consumer divisions ahead of investors ’day, Brian McNamara told the Financial Times that the business will be able to make smaller deals, despite being burdened with debt.

He said the new company will be named beforehand a spin-off next year – selling more brands directly to consumers would turn more prescription drugs into over-the-counter purchases and spread them in China.

“This vitamin supplement in the portfolio remains an option,” he said. “A lot of the options in that space aren’t mass purchases. . . I think we would have the ability to do that if it made sense for the business and provided direct profitability. ”

GSK is putting pressure on investors on June 23 to take over US hedge fund Elliott Management a million-pound stake to lobby for change in the company. Some shareholders have expressed doubts that Emma Walmsley, formerly CEO of GSK, who ran the consumer business, is worried about whether she should run the new pharmaceutical company, as they are worried she will not be able to revive it. poor piping.

The healthcare business for consumers with brands like Centrum vitamins and Sensodyne toothpaste is partnering with Pfizer, which was created in late 2018 and will be rolled out in the summer of 2022. It also includes Novartis ’consumer healthcare company. It has been purchased by GSK the Swiss drug manufacturer came out of a joint venture in 2018.

On Strategy Day, GSK will tell investors how it plans to structure the spinout, which some analysts say is likely to be aimed at buying the health care business for consumers. In 2020, revenues rose 4 percent to $ 10 billion, but it will have net debt before adjusted interest income, taxes, amortization and amortization 3.5 to 4 times.

McNamara said the distribution will allow shareholders to profit from the “rise” of the business. “Honestly, separating for us means that we can work as an independent company, set our own strategy and prioritize capital allocation,” he said. “This is not going to be a small company. The FTSE will be somewhere from 10 to 20.”

He added that there is still room for “consolidation” in the sector. GSK has the largest share of the fragmented consumer health industry in products such as painkillers, vitamin and mineral supplements, cold remedies and other over-the-counter drugs, with 9.1% of the market, according to Euromonito.

Its three biggest opponents are also pharmaceutical companies – Johnson & Johnson, Bayer and Sanofi – but the health growth area has been for consumer goods companies such as Reckitt Benckiser and Procter & Gamble.

Vitamins, minerals and supplements had a special boost as a result of the pandemic, as GSK saw a 16 per cent increase in sales in 2020 a year earlier.

International multinationals have been pulling out accessory brands this year with Nestlé ados Purchase of major brands from the U.S.-based company The Bountiful Company, which makes Nature’s Bounty vitamins for $ 5.75 million.

“This consumer has a personal interest in their personal health and well-being. . . it really boosted the tremendous growth of vitamin minerals and supplements, ”McNamara said.

He added that the company was “looking at multiple brands” to sell directly to consumers after ChapStick launched its US website for lip balm last year, seeing direct sales as “sales and first-party data”.