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In a long scripted overhaul of its business, GlaxoSmithKline spun off its consumer health business on Monday (July 18) in the biggest listing in Europe for more than a decade. The new company, Haleon, becomes the world's biggest standalone consumer health business, home to brands including Sensodyne toothpaste, pain relief drug Panadol and cold treatment Theraflu. Shares in Haleon started trading at 330 pence on Monday morning, giving the business a market valuation of around £30.5 billion - dashing high hopes for Haleon's much higher market valuation after GSK in January said it had rebuffed a £50 billion offer from Unilever on the basis it was too low. The major strategy shift by GSK chief executive Emma Walmsley to focus on the company's core pharmaceuticals business comes after she faced intense activist shareholder pressure over its delays in producing Covid jabs and treatments.

British pharmaceutical giant GlaxoSmithKline beat first-quarter sales and earnings forecasts on Wednesday (April 27), helped by demand for its Covid-19 therapy and shingles vaccine, as the company moves towards the July separation of its consumer health business. Profit after tax jumped 68 percent to £1.8 billion ($2.3 billion, 2.1 billion euros) compared with the start of 2021. Sales climbed 32 percent to almost £9.8 billion. "We have delivered strong first-quarter results in this landmark year for GSK, as we separate consumer healthcare and start a new period of sustained growth," chief executive Emma Walmsley said in the earnings statement. "Our results reflect further good momentum across speciality medicines and vaccines, including the return to strong sales growth for Shingrix and continuing pipeline progress." The shingles vaccine generated £698 million in quarterly sales, beating analyst estimates of 528 million. Walmsley is seeking to reshape GSK after facing fierce investor criticism over the company's delay in producing Covid jabs and treatments.

Shares in GSK, Sanofi and Haleon fell sharply on Thursday (August 11) amid growing investor concerns about US litigation focused on a heartburn drug that contained a probable carcinogen, while Johnson and Johnson has decided to end sales of talcum powder after cancer claims. GSK shares were down 6.8 per cent, Sanofi's were down 6.9 per cent and Haleon's down per cent. GSK and Sanofi at various points sold the drug - originally branded as Zantac - which US regulators ordered off the market in 2020. Haleon, spun out as an independent listed company last month, comprises consumer health assets once partly owned by GSK. The prospect of impending litigation is not new. Among other disclosures, recently-listed Haleon had highlighted the risk of such lawsuits in its prospectus. The topic has arrived in investor consciousness in recent days it seems, but has been rumbling on in the background for a few years, Deutsche Bank analysts wrote in a note.

Consumer healthcare group Haleon on Thursday announced that it has entered into a binding agreement for the sale of the ChapStick brand to Suave Brands Company, a company owned by American private equity firm Yellow Wood Partners. The British consumer healthcare company has agreed to sell its lip balm brand to Suave for about $430 million in cash and a minority interest in the buyer, valued at around $80 million. Haleon, which was spun off from the GSK Group in July 2022, said that cash proceeds from the sale would be used to pay down debt. ChapStick generated £112 million ($142.5 million) in revenue in 2023, said Haleon, adding that the sale is likely to close in the second quarter of 2024. Brian McNamara, Chief Executive Officer, Haleon, said: "Today's announcement is consistent with Haleon being proactive in managing our portfolio, and being rigorous and disciplined where there are opportunities for divestment. "While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon.