GlaxoSmithKline has launched a multibillion pound restructuring drive, including a potential flotation of its HIV drugs business, in a push to win back shareholder support after a year marked by corruption allegations and faltering sales.
Sir Andrew Witty, chief executive, said GSK would consider an initial public offering of a minority stake in ViiV Healthcare next year that would place it in the top half of the FTSE 100 index as a standalone company, with a valuation of up to £15bn.
He also announced a cost-cutting programme aimed at saving an annual £1bn within three years and said the 2015 dividend would be held flat at this year’s 80p a share level, assuaging concerns that the payout could be under threat. The measures represented a response to mounting shareholder unrest over GSK’s lacklustre financial performance, as well as fallout from the Chinese bribery scandal that resulted in a £300m fine last month.