Written By
Sheikh Hasib Ahmed
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Through the most recent sale of a portion of its interests in Haleon Plc, the consumer health company it spun out last year, GSK Plc has raised £886 million ($1.1 billion).
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270 million shares of the British pharmaceutical company were sold for 328 pence, according to a regulatory notice made on Friday. The cost represents a markdown of around 2.5% from Haleon's Thursday closing price.
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Early trading in London saw a 2% decline in Haleon stock. Little had changed at GSK.
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Following the deal, GSK now owns a 7.4% share of Haleon, the company that produces Panadol and Aquafresh toothpaste.
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The consumer health divisions of GSK and Pfizer Inc. were originally combined to form Haleon. In order to better concentrate on its pharmaceutical and vaccine business, GSK made the decision to split Haleon.
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With recent progress on a vaccine against the common but deadly RSV virus, GSK, led by Chief Executive Officer Emma Walmsley, is attempting to enhance its medication pipeline.
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The spinoff was initiated in response to pressure from activist investor Elliott Investment Management and was intended to improve the prospects of both GSK and Haleon.
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Since the spinoff, GSK has declared its intention to use its ownership in Haleon as a financial investment, using the money obtained to bolster its balance sheet and support its goal to enhance its therapeutic pipeline.
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Less than six months have passed since GSK sold Haleon stock for roughly £804 million ($978 million).
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In keeping with its decision to concentrate on pharma discoveries, Pfizer has also said it will gradually reduce the amount of stock it owns in Haledon.