28th Jul 2014 05:57
LONDON (Alliance News) - GlaxoSmithKline PLC's Chief Executive Andrew Witty has opened up the possibility of the company being broken up, The Financial Times reported Sunday.
Witty said Glaxo had the option to spin-off its consumer healthcare business if a time came when it offered more value as a standalone company. However, he made it clear there were no plans to do this in the near term.
The possibility follows Glaxo lowering its earnings guidance with its interim results last Wednesday, and new allegations of malpractice by Glaxo employees in Syria.
Glaxo has continued to weather investigations from Chinese authorities over allegations that it paid up to USD500 million to doctors and hospital executives over the past six years. A series of other smaller bribery claims have since surfaced in Poland, Iraq, Jordan and Lebanon.
However, in an interview with the Financial Times, Witty reiterated that Glaxo's position is strong.
"If you look back at the last seven or eight years, we?ve absorbed all our [patent losses] ? and we?ve broadly held the business at the same scale,? Witty said in the interview. ?You contrast that with almost anyone else who has been through that and they?ve either had a dramatic decline in size or they?ve made an acquisition or they?ve been bought.?
http://www.ft.com/cms/s/0/6b22ce50-1503-11e4-85bc-00144feabdc0.html?ftcamp=crm/email/2014728/nbe/UKBusiness/product&siteedition=uk#axzz38jrKSMym
http://www.ft.com/cms/s/0/f7869406-1564-11e4-ae2e-00144feabdc0.html?ftcamp=crm/email/2014728/nbe/UKBusiness/product#axzz38jrKSMym
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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