GSK divests its remaining stake in Haleon

GSK Sells Remaining Stake in Haleon, Raises £1.25bn

In a strategic move to focus on high-value drugs, pharmaceutical giant GSK has sold its remaining stake in Haleon, the consumer healthcare company it spun off and listed in London in July 2022. The sale raised £1.25bn, marking the end of GSK’s ties to the maker of popular brands like Panadol and Sensodyne.

The sale of the 4.2 per cent stake was priced at 324p per share, representing a 2.6 per cent discount to the closing price on Thursday. This move comes after GSK had made three previous stock disposals since May 2023, gradually reducing its stake in Haleon.

Overall, GSK has raised nearly £4bn through stock disposals over the past year, which will be used to reduce debt or for potential mergers and acquisitions. The pharmaceutical industry has seen a trend of companies streamlining their businesses to focus on developing new medicines with higher profit margins.

Haleon, formed as a joint venture between Pfizer and GSK’s consumer health assets in 2019, has also been undergoing restructuring efforts. The company recently sold off non-core brands like ChapStick to private equity group Yellow Wood Partners for $430mn.

With GSK’s exit from Haleon, other pharmaceutical companies like Sanofi and Johnson & Johnson are also making moves to streamline their businesses. Pfizer, which retained a 32 per cent stake in Haleon after its IPO, plans to eventually exit the company as well.

The sale of GSK’s stake in Haleon underscores the shifting priorities in the pharmaceutical industry towards high-value drugs and strategic business restructuring.