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Emma Walmsley, CEO of GlaxoSmithKline, is facing a battle to win over major shareholders after Elliott Management attracted investors to make radical changes to the pharmaceutical group, according to major investors.
Due to GSK’s Investor Day next week, activist investor Elliott has also seen doubts as to whether Walmsley should move forward. transformation was planned for the group consumer health division last year.
One of the top 20 shareholders says it has attracted some investors after discussing management changes with Elliott participation of millions of pounds At GSK earlier this year. “Its origin lies in the consumer rather than in health, and that may be why,” he said.
Another major shareholder said it appears Elliott did not want Walmsley to run the pharmaceutical company and would also boost GSK’s initial public offering of the vaccine unit, breaking the company even further than expected. Elliott declined to comment.
At Wednesday’s event, shareholders are likely to wonder if GSK should spend so much on catching cancer drugs, and should it try to strengthen its short-term pipeline to compensate for the loss of some HIV exclusivity? medications later in the decade, or focused on next-generation therapies for five to 10 years.
Shareholders who need to decide whether to support Elliott’s efforts are also watching investors ’day closely. A senior asset manager said they are “waiting for the capital markets day” and are listening to what Walmsley has to say.
GSK’s CEO will focus his presentation on the promise of a “new GSK” – which will kick off the day’s show for investors – in a bid to prove he has a clear vision for refreshing the drug pipeline if given time to do so.
Luke Miels, president of GSK, who runs the commercial business, compared the company to AstraZeneca, where he worked, which was also behind oncology, but has now moved forward.
“I think these things take time and then I remember meeting Astra with investors and questioning my progress in oncology,” he said. “I think it’s about picking the right assets and moving forward. And we have a lot of options.”
Walmsley will provide the first long-term financial forecasts for the company, determine the future of the dividend policy, and dissolve or simply disable or make the initial public offering of the consumer health unit.
It will be hard to please all shareholders, starting with the IPO of the consumer business from investors who are eager to finance investments in innovative medications and listing those who need to buy shares again.
“I want to know what is happening with the promise of the pipeline and [have] the assertion that the consumer business will be dissolved, not the IPO, as I already own it and do not have to buy it to consolidate their balance sheet, ”the second shareholder said.
GSK’s management and management team met with the top 40 shareholders ahead of the event.
“The shareholders are telling us that they are very supportive of the strategy they are telling us, and we want to continue to deliver and not be misled,” the company said.
Additional report by Arash Massoudi
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