Pfizer pulls out of GSK consumer health venture after London listing

Pfizer will sell off its stake in Haleon, the consumer healthcare venture with GlaxoSmithKline, after scheduled listing in London on July 18.

The US drugmaker has pledged to sell its shares in a “disciplined” manner and has formed a “orderly marketing” agreement with GSK to ensure the two sellers do not destabilize the source. in the new independent company. There will be a lock-in period of several months.

GSK announced Wednesday it has submitted its prospectus for Haleon to the UK’s Financial Conduct Authority for approval and that it expects the stock to be included in the high-end listing segment of the Exchange. London Stock Exchange on July 18.

The The birth of a consumer healthcare company – which owns brands including Sensodyne and Panadol – will be the biggest listing in London in a decade.

GSK has rejected a bid of £50 billion from Unilever for the unit late last year, arguing that it undervalued the company. Haleon is expected to grow revenue by four to six per cent over the medium term, from almost £10 billion a year.

Haleon was created with consumer health assets from GSK, Pfizer and Novartis. It will be led by Brian McNamara, who oversaw the venture when it was part of GSK, and the board will be chaired by former Tesco chief executive Sir Dave Lewis.

Figures released on Wednesday show Haleon making £1.6 billion in pre-tax profits in 2021, down from the £2.2 billion that analysts at Barclays estimated last month. Three. Revenue for the year was £9.5 billion.

The UK drugmaker owns 68% of the business, while Pfizer have 32% shares. Prior to bankruptcy, GSK was planning a dividend of more than £7 billion and Pfizer more than £3 billion, leaving Haleon with a net debt of £10.3 billion, a figure the company plans to reduce. gradually over time.

After the spin, GSK investors will own at least 54.5% of the company’s shares, receiving one share in Haleon for every GSK share they own. Funding mechanisms designed to fill the gap in GSK’s pension fund will account for another 7.5%. GSK will own up to 6%, which will also sell off over time to fund investments in its drug and vaccine delivery systems.

The company also announced the consolidation of shares in the remaining pharmaceutical business to ensure comparability before and after the turnaround.

Ahead of the analysis, a general meeting will be held on July 6. GSK will announce its second-quarter results on July 27, treating Haleon as a decommissioned company. Haleon will provide a trading update on the same day but will publish the full interim results in September.

Pfizer did not respond to a request for comment.

Additional reporting by Judith Evans

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