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Walmsley Shakes Up GSK; Cuts More Than 30 Drug Development Programs

 
• By Lucie Ellis-Taitt

In her first address as CEO, Emma Walmsley has shocked the market with a long list of changes for GSK, including a total makeover of the group's pharma unit. As a result, more than 30 R&D programs will be getting the axe and a 2011 commercialization partnership with Johnson & Johnson is on its way to the gallows.

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Walmsley to set GSK on a new path with R&D shake up • Source: Shutterstock

During the company's second quarter earning's report, GlaxoSmithKline PLC's new CEO Emma Walmsley outlined key issues for the business over the next three years and set out a series of new priorities, putting the group's pharmaceutical unit at the top of her to-fix list ahead of the consumer health and vaccine units.

The new CEO's corporate overhaul contains many more fireworks than analysts and investors had anticipated. GSK's stock price (London Stock Exchange) was trending down by around 1.5% in the afternoon...

2Q Numbers At A Glance
  • Group sales: £7.3bn
  • Operating profit: £2.08bn
  • EPS: 27.2p
  • Pharmaceutical sales: £4.36bn (cons: £4.31bn)
  • Vaccines sales: £1.11bn (cons: £1.08bn)
  • Consumer health sales: £1.85bn (cons: £1.89bn)
  • Of the major...

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