Emma Walmsley outlined plans to break up Glaxo Smith Kline in February last year. Its consumer brands — Advil ibuprofen and Sensodyne toothpaste — would be split from its vaccines, respiratory drugs and HIV medication.
The rationale is this: Glaxo’s consumer division throws off a lot of cash, meaning that it can support higher debt levels. The remaining pharma business will be free to invest in R&D.
That set the clock ticking on a race to beef up Glaxo’s portfolio of early-stage drugs to help the FTSE 100 giant compete with rivals such as Astra Zeneca and Pfizer.
Rebuilding Glaxo’s stable of cancer medications after it sold off its oncology franchise to Novartis in 2014 is key. However, it has been accused of overpaying. One