A show of support for GlaxoSmithKline's hedge fund fight
Several large shareholders have said that they will support GlaxoSmithKline in its battle with hedge fund Elliott Management.
Several large shareholders have signalled that they will support GlaxoSmithKline (GSK) in its battle with hedge fund Elliott Management, giving a “huge boost” to the pharma company’s “under-fire” management, say Alex Lawson and Emma Dunkley in The Mail on Sunday. Elliott is said to be pushing for a “dramatic” new plan that could see the FTSE100 firm “sold off in parts or swallowed up by a foreign rival”. However, BlackRock, GSK’s biggest investor, its fifth-largest shareholder Dodge & Cox,and insurer Royal London have reportedly urged firm’s chairman Jonathan Symonds to carry on with plans to overhaul its drugs pipeline and to spin off its consumer healthcare division next year.
The intervention will provide “some relief” for GSK’s chief executive Emma Walmsley (pictured), and there may be more good news to come, say Alex Ralph and Dominic Walsh in The Times. GSK’s Covid-19 vaccine, which it is developing in conjunction with Sanofi, has showed “positive results” in recent trials. GSK and Sanofi have “trailed others in the race to provide coronavirus jabs”, but may now have a product available by the end of the year.
This shows why GSK should hang on to its vaccines unit, says Lex in the Financial Times. The division is a “crown jewel” that “has increased revenues by 50% and nearly doubled profits in the past four years” thanks to the Shingrix shingles vaccine, while its respiratory syncytial virus vaccine looks promising. Research into the immune system is driving both the vaccines and pharma business. Splitting this up would be “the wrong prescription”.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Do you face ‘double whammy’ inheritance tax blow? How to lessen the impactFrozen tax thresholds and pensions falling within the scope of inheritance tax will drag thousands more estates into losing their residence nil-rate band, analysis suggests
-
Has the market misjudged Relx?Relx shares fell on fears that AI was about to eat its lunch, but the firm remains well placed to thrive
-
Has the market misjudged Relx?
Relx shares fell on fears that AI was about to eat its lunch, but the firm remains well placed to thrive
-
8 of the best properties for sale with minstrels’ galleriesThe best properties for sale with minstrels’ galleries – from a 15th-century house in Kent, to a four-storey house in Hampstead, comprising part of a converted, Grade II-listed former library
-
The rare books which are selling for thousandsRare books have been given a boost by the film Wuthering Heights. So how much are they really selling for?
-
How to invest as the shine wears off consumer brandsConsumer brands no longer impress with their labels. Customers just want what works at a bargain price. That’s a problem for the industry giants, says Jamie Ward
-
A niche way to diversify your exposure to the AI boomThe AI boom is still dominating markets, but specialist strategies can help diversify your risks
-
New PM Sanae Takaichi has a mandate and a plan to boost Japan's economyOpinion Markets applauded new prime minister Sanae Takaichi’s victory – and Japan's economy and stockmarket have further to climb, says Merryn Somerset Webb
-
Early signs of the AI apocalypse?Uncertainty is rife as investors question what the impact of AI will be.
-
8 of the best properties for sale with beautiful kitchensThe best properties for sale with beautiful kitchens – from a Modernist house moments from the River Thames in Chiswick, to a 19th-century Italian house in Florence
