Demerger and the Future

Pharmaceutical Technology, Pharmaceutical Technology, August 2022, Volume 46, Issue 8

GSK has completed its demerger of Haleon and has signed an agreement to help support future pandemic preparedness in Europe.

In mid-July 2022, GSK announced the completion of its demerger from the consumer healthcare business, now formed under the moniker of the Haleon Group (1). However, market conditions and an overriding concern about inflation have proven less than favourable for Haleon’s listing debut on the London Stock Exchange, the biggest listing for a decade, with a small but rapid drop in share price seen (2). Shares in the newly reduced company GSK, which is now solely focused on biopharmaceuticals, also experienced a drop, but through consolidation, the price was roughly brought back in-line with that seen before the demerger (2).

GSK’s own reported second quarter results demonstrated healthy growth, and as a result of demand in vaccines, the company is increasing its sales growth outlook in this area, with Shingrix, the company’s shingles vaccine, expected to do very well (3). “This is GSK’s first set of results as a newly focused biopharma company, and we have delivered an excellent second quarter performance, with strong growth in Specialty Medicines, including HIV, and a record quarter for our shingles vaccine Shingrix,” said Emma Walmsley, CEO, GSK, in a company press release (3). “With this momentum in sales and operating profit growth, we have raised our full-year guidance and are confident in delivering the long-term growth outlooks we set out for shareholders last year.”

Preparing future support

Additionally, GSK announced on 28 July 2022 that it had signed an agreement with the European Commission’s Health Emergency Preparedness and Response Authority (HERA) for the reservation of future production and supply of Adjupanrix (4). This latest agreement follows on from others made by GSK with the United States, the World Health Organization (WHO), and Canada for the pandemic influenza vaccine.

“I’m delighted that HERA has chosen GSK as a key partner in pandemic flu preparedness. This contract follows three other agreements GSK has made, in the US, Canada, and with the WHO,” said Roger Connor, president Vaccines and Global Health, GSK, in a press release (4). “These agreements leverage GSK’s world-class global vaccine manufacturing network to continue our long-standing partnerships on pandemic preparedness and response. We have all seen the devastating human, economic and social consequences of a pandemic and the important part that vaccines are playing in helping us return to normal life. Through this agreement for 85 million doses, we can help the [European Union] and European countries, as well as other countries and regions, be better prepared for future pandemics.”

References

1. GSK, “Completion of the Demerger of Haleon and Share Consolidation of GSK,” Press Release, 18 July 2022.
2. J. Evans, “Debut of GSK Consumer-Health Spin-Off Haleon Disappoints,” The Financial Times, 18 July 2022.
3. GSK, “GSK Delivers Strong Q2 2022 Sales of £6.9 Billion +19% at AER, +13% at CER and Total EPS from Continuing Operations 17.5p -42% AER, -58% CER; Adjusted EPS of 34.7p +23% AER, +6% CER,” Press Release, 27 July 2022.
4. GSK, “GSK Signs Agreement to Support Pandemic Preparedness in Europe,” Press Release, 28 July 2022.

About the author

Felicity Thomas is the European/senior editor for Pharmaceutical Technology Group.

Article details

Pharmaceutical Technology Europe
Vol. 34, No. 8
August 2022
Page: 6

Citation

When referring to this article, please cite it as F. Thomas, “Demerger and the Future” Pharmaceutical Technology Europe 34 (7) 2022.