GSK attempts to instil confidence ahead of split

GlaxoSmithKline (LSE: GSK) has sought to reassure investors of a bright future for what it is calling the New GSK following the planned demerger in mid-2022 of its Consumer Healthcare business.

The UK drugmaker held an investor day on Wednesday at which the company promised that New GSK would deliver a step-change in growth and performance over the next decade driven by high-quality Vaccines and Specialty Medicines portfolio and late-stage pipeline.

"New GSK is exceptionally well positioned to positively impact people’s health and to deliver strong performance and value to shareholders through the decade"Each year, sales growth of more than 5% and adjusted operating profit rises of more than 10% are forecast from 2021 to 2026. By 2031, New GSK aims to deliver sales of more than £33 billion ($46 billion), which is close to what it is achieving annually now ahead of the demerger.