GSK reins in drug sell off
GLAXOSMITHKLINE has dropped plans to float its HIV drug business.
GSK headquarters in West London
ViiV, its joint venture with Pfizer and Japan’s Shionogi, could have been valued at about £15billion but Glaxo said its decision to retain the business reflects its “strong positive outlook”.
Glaxo, which announced first-quarter sales of £5.6billion, also scaled back plans to return £4billion to shareholders.
We must be prepared for uncertainties, including the possible introduction of [a] generic [respiratory drug] Advair in the US.
Instead, it will pay a £1billion special divi and promises a steady payout for three years.
Chief executive Sir Andrew Witty said: “We must be prepared for uncertainties, including the possible introduction of [a] generic [respiratory drug] Advair in the US.”