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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.

US pharmaceutical giant Johnson & Johnson on Friday (November 12) announced plans to break up into two listed companies, separating its consumer health arm that sells Band-Aids and Tylenol from its pharmaceutical division. Johnson & Johnson said in a statement it will create "two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation." It plans to complete the separation in 18-24 months, creating two publicly traded companies. CEO Alex Gorsky said the decision was made following a "comprehensive review." The board and management believe the split is "the best way to accelerate our efforts to serve patients, consumers, and healthcare professionals, create opportunities for our talented global team, drive profitable growth, and -- most importantly -improve healthcare outcomes for people around the world," he said.

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.

Opella Healthcare, trading as Sanofi Consumer Healthcare, said it has entered into a dual partnership agreement with Alliance Healthcare and Phoenix Healthcare Distribution for the wholesale supply of its products to UK pharmacies. In effect from the start of February, the new dual partnership will ensure Sanofi Consumer Healthcare 'continues to provide its customers with exceptional customer service', the company said, adding that the increased efficiency will facilitate improved service levels and stock availability of Cialis Together, Allevia, Buscopan, Dulcolax and Phenergan to community pharmacies in the UK. "At Sanofi Consumer Healthcare we are committed to supporting the self-care agenda in the UK," Nick Linton, head of UK country operations, commented. "Making healthcare as simple as it should be to bring health and wellbeing to all is a key priority for us in 2024 and beyond. Our new wholesale model reflects our deep commitment to working as efficiently as possible in close partnership with pharmacists to shape a healthier future."

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.