GSK’s new Consumer Healthcare spinoff to be named ‘Haleon’

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GSK’s new Consumer Healthcare spinoff to be named ‘Haleon’

Haleon, a consumer healthcare company
Image source: © Dolgachov | Megapixl.com

Highlights

  • GlaxoSmithKline has announced that the new Consumer Healthcare company created after demerger from GSK, will be named Haleon.
  • A standalone company, Haleon is expected to be a new world-leader in consumer healthcare, providing lucrative prospects of attractive organic sales growth, operating margin expansion and consistent high cash generation.
  • Haleon will be headquartered in Weybridge, UK and is anticipated to attain a premium listing on the London Stock Exchange.

British drug maker GlaxoSmithKline plc (GSK) on Tuesday announced that it will name its new independent healthcare company Haleon, post the demerger in mid-2022.

Haleon is inspired by the merging of the words Hale, which means ‘in good health' and Leon, which implies 'strength'. 

Earlier in June 2021, the pharma giant had indicated that subject to approval from shareholders, the separation of Consumer Healthcare will be executed through a demerger of at least 80% of GSK’s holding to shareholders

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GSK’s pharmaceuticals business has a broad portfolio of innovative and established medicines in respiratory, HIV, immuno-inflammation and oncology. On the other hand,  Its Consumer Healthcare business caters to various areas such as oral health, pain relief, respiratory and skin health.

Haleon, which will be a standalone company, is expected to be a new world-leader in consumer healthcare, offering a compelling proposition to deliver better everyday health with humanity. GSK highlighted that the new business would provide lucrative prospects of attractive organic sales growth, operating margin expansion and consistent high cash generation.

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Key developments following demerger

The creation of Haleon is underpinned by a series of successful investments and strategic changes to consumer health business of GSK over the last eight years. These developments included integrations of the consumer product portfolios from Novartis and Pfizer. It is now a highly valuable and focused global business generating annual sales of approximately £10 billion.

Haleon will be headquartered in Weybridge, UK, with the new Weybridge campus anticipated to open at the end of 2024.  The campus would be a centre of R&D and innovation, and home to a new state-of-the-art Shopper Science Lab.

GSK expects Haleon to attain a premium listing on the London Stock Exchange, with ADRs to be listed in the US. The Board of GSK has confirmed Brian McNamara as CEO Designate and Sir Dave Lewis as Chair Designate of Haleon.

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Haleon aspires to cast a solid impact on everyday human health

Haleon will have a world-class portfolio of category-leading global brands, including Sensodyne, Centrum, Voltaren and Panadol. These brands enjoy trust amongst healthcare professionals, customers and people worldwide and are believed to improve the health and wellbeing of individuals and their communities.

The creation of the new healthcare business is bolstered by strong demand from the £150 billion consumer healthcare sector amidst increased focus on health and wellness. Moreover, GSK also sees significant demand from an ageing population and emerging middle-class, and unmet consumer needs.

All in all, GSK believes that Haleon is well-positioned to deliver human health impact and to sustainably grow ahead of the market in the coming years.

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