GSK consumer business split off after investor pressure from Elliott Management

View of the headquarters of the British pharmaceutical company GlaxoSmithKline in west London.

Ben Stansall | AFP | Getty Images

LONDON — British pharmaceutical giant GlaxoSmithKline faces a crunch meeting with investors on Wednesday after announcing a new strategy for the next decade centered on the splitting off of the company’s substantial consumer products arm.

The new core drug and vaccine division, which CEO Emma Walmsley has dubbed “New GSK,” has set targets of 5% sales growth and 10% profit growth between now and 2026. The separation is expected to take effect in mid-2022.

GSK is also aiming for more than £33 billion ($46.2 billion) worth of sales by the end of the decade, which it hopes will offset the loss of exclusivity over HIV medication dolutegravir in 2028.

Investors have reacted positively to the plans thus far, with GSK shares up 3% by mid-afternoon trade in Europe.

However, Walmsley will need the backing of investors at the company’s…

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