GSK focused on split as COVID curb easing helps earnings

The British drugmaker said it would provide details on June 23 on its plan to separate into an over-the-counter products business and another for prescription medicines and vaccines and its chief executive Emma Walmsley said she was focused on the broader transformation of the company. GlaxoSmithKline Plc, which is preparing to split into two next year, has fallen behind in the coronavirus vaccines race and its broader strategy is in focus after a report that U.S. activist investor Elliott built up a significant stake.

GSK confirmed plans to split in two were "well underway" on Wednesday after exceeding analysts' first-quarter earnings forecasts as an easing of COVID-19 curbs meant more clinic visits for critical treatments such as HIV and routine shots. The British drugmaker said it would provide details on June 23 on its plan to separate into an over-the-counter products business and another for prescription medicines and vaccines and its chief executive Emma Walmsley said she was focused on the broader transformation of the company.

GlaxoSmithKline Plc, which is preparing to split into two next year, has fallen behind in the coronavirus vaccines race and its broader strategy is in focus after a report that U.S. activist investor Elliott built up a significant stake. GSK said that turnover for the three months to March fell 15% to 7.42 billion pounds ($10.28 billion) at constant currency rates, while adjusted earnings stood at 22.9 pence per share.

Analysts had expected adjusted earnings of 21.9 pence per share and sales of 7.83 billion pounds, a company-compiled consensus https://www.gsk.com/en-gb/investors/analyst-consensus/analyst-consensus of 17 analysts showed. GSK last year launched the split plan, which involves merging its over-the-counter products business into a venture with Pfizer and separating this from its prescription medicines and vaccines units.

Investments to prepare for this have hurt earnings, but GSK hopes the streamlined operations will pay off in the long term. "I'm very focused on leading GSK through that successful separation and beyond," Walmsley said during a conference call following the release of GSK's results. ($1 = 0.7215 pounds)