GSK Updates Spin-off of Consumer Healthcare Biz, New NameBy
GlaxoSmithKline (GSK) has announced that the new company, to be formed from the proposed demerger of its Consumer Health business, slated for mid-2022, will be called Haleon.
The creation of Haleon results from a series of investments and changes to GSK’s Consumer Health business over the last eight years, including integration of the consumer product portfolios from Novartis and Pfizer. The business now generates annual sales of approximately £10 billion ($13.5 billion).
GSK’s decision to demerge its Consumer Healthcare business into a separate company follows the formation of two prior joint ventures for the business. Pfizer and GSK formed their Consumer Healthcare joint venture in 2019 with Pfizer owning a 32% stake and GSK 68%. Prior to forming the joint venture with Pfizer, GSK had gained full ownership in a consumer healthcare joint venture from Novartis by acquiring Novartis’ 36.5% stake in the companies’ consumer healthcare joint venture in 2018. The GSK–Novartis consumer healthcare joint venture was formed in 2015 as part of a three-part transaction with Novartis, which included the formation of the consumer healthcare joint venture. Novartis also acquired certain oncology products and pipeline compounds from GSK and divested its non-influenza vaccines business to GSK.
Subject to approval from shareholders, the separation of the Consumer Healthcare business will be by way of a demerger in mid-2022 of at least 80% of GSK’s holding to shareholders.
Haleon will be headquartered in Weybridge, UK. The new Weybridge campus is expected to open at the end of 2024. In addition to being the new company’s corporate headquarters, it will also be a center of R&D and innovation and home to a new Shopper Science Lab.
In July 2021, the Board of GSK named Brian McNamara as CEO Designate of the company and in December 2021, announced the appointment of Dave Lewis as Chair Designate of the new company to result from the proposed demerger of Consumer Healthcare from GSK.