Pharma giant GSK says it will increase sales by 5% to 2026

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June 23 - New GSK, the pharmaceuticals business being separated from its consumer health operations, promised to increase sales by more than 5% a year to 2026, the group said on Wednesday as it published details of the split.

Investors have been waiting for details of the separation, which was first announced in December 2018 when Pfizer agreed to a joint venture for consumer brands such as Sensodyne toothpaste and Advil painkillers with GSK.

The Demerger planned for the middle of next year will allow GSK to focus on strengthening its core drug business, which has been hit by a lack of rapid-growing products and patients overturning treatments due to the COVID 19 Pandemic.

Although GSK has also been defeated by the likes of Pfizer, Moderna and AstraZeneca in completing a COVID-19 vaccine.

GSK is currently valued at about 10.3 times its global earnings including forecast core revenue and the worldwide pharma majors' average of more than 12, shows Refinitiv Eikon data. The market price of GSK has fallen in the past 12 months to about 14%.

At an investor day outlining its plans, GSK said the consumer arm was expected to receive a dividend up to 8 billion pounds from the pharmaceutical business who will have its own listing on the London Stock Exchange.

As expected, the consumer segment will also reduce its share of debt and the combined dividend of the two businesses will be reduced.

That should help to give the pharmaceuticals business more scope in particular to invest in drug development and deals. How can someone use a word that just pops up around 8am?

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