Reaction to GSK’s plan to spin off its consumer healthcare business

A GlaxoSmithKline (GSK) logo is seen at the GSK research centre in Stevenage, Britain November 26, 2019. REUTERS/Peter Nicholls

LONDON, June 23 (Reuters) – GSK (GSK.L) set out plans on Wednesday to turn its consumer healthcare business into a separately listed company, aiming to strengthen drug development at its pharmaceuticals business with an 8 billion pound ($11 billion) windfall. read more

GSK said it aimed to sell a residual 20% stake in the newly listed consumer business “in a timely manner”.

Here is some analyst reaction:

JPMORGAN:

“We see the key positive for the market today being a smaller dividend cut than feared, we see the key negative for the market being the 20% sale of the Consumer stake, which will dilute GSK shareholders exposure to this segment, and which could see some value going to the taxman. The 2031 Biopharma Revenue target of more than 33 billion pounds ($46 billion)is far above our expectations.”

“Given fairly low expectations…

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