(Alliance News) - GlaxoSmithKline PLC on Friday said Chief Executive Emma Walmsley is the right leader for the core pharmaceutical and vaccines business after the consumer division gets spun off, in response to a scathing open letter from activist investor Elliott Management Corp.
"The board strongly believes Emma Walmsley is the right leader of New GSK and fully supports the actions being taken by her and the management team, all of whom are subject to rigorous assessments of performance," GSK said in response to the letter.
GSK is planning to spin off its consumer healthcare division, which includes toothpaste and over-the-counter medicines, from its pharmaceuticals and vaccines business, which it calls New GSK.
On Thursday, Elliott said it had built a significant stake in the London-based company, which has failed to realise its value after years of poor performance.
Without naming Walmsley, Elliott called for pharmaceutical and scientific experts to pick the "right leadership" for New GSK from internal and external candidates. Walmsley's background is in consumer business, and she spent 17 years at L'Oreal SA before leading GSK's consumer business and then being promoted to group CEO in 2017.
On Friday, GSK said its largest shareholders support its strategy and have confidence in its leadership.
GSK said it has been preparing for two new, appropriately qualified, independent boards ahead of the separation and that it has almost completed a six-month search for a chief executive officer for the consumer health business.
Shares in GSK were up 0.1% to 1,440.00 pence in London on Friday morning.
By Ivan Edwards; ivanedwards@alliancenews.com
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Glaxosmithkline (GSK)