Factbox-GSK creates consumer healthcare business worth up to $57 billion

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Haleon is the world’s largest consumer health company – home to brands such as Sensodyne toothpaste and Advil painkillers – encompassing assets of GSK, those shared with Pfizer and previously Novartis.

It starts trading on the London Stock Exchange with the symbol “HLN”.

Expectations for Haleon’s market valuation are high after GSK said in January it had rejected a 50 billion pound ($59.14 billion) offer from Unilever because it was too low.

Barclays analysts estimate that Haleon has an enterprise value of 33-48 billion pounds ($39-57 billion).

POST-SPLIT:

Pfizer has a 32% stake in the company, which the US drugmaker has said it intends to sell over time.

GSK’s 68% stake will drop to 13.5%. The remaining 55% is floating.

Pfizer, GSK and other current stakeholders have committed to a lockdown period through November so as not to jeopardize stock of the newly independent Haleon, GSK said last month.

TURNOVER:

Haleon went from just over £4 billion in sales in 2014 to around £9.6 billion last year.

Two key operations fueled this growth. GSK struck a $13 billion deal in 2018 to take full control of a consumer healthcare company from Swiss pharmaceutical group Novartis.

The following year, the British drugmaker integrated its consumer health business with that of Pfizer, forming what is now Haleon.

This year, Barclays analysts expect Haleon to generate £10.7 billion in sales.

According to GSK – which is more focused on vaccines and prescription drugs as a stand-alone company – Haleon is poised to deliver mid-term annual organic growth above market growth of 4% to 6%.

This guidance range made in June beat some analysts’ expectations and sparked some skepticism among some investors given the 3% to 5% average for large-cap consumer staples, Barclays analysts wrote. in a note.

FOCUS, MAIN MARKETS:

Haleon offers over-the-counter products in three major therapeutic areas – pain relief, digestive and respiratory – in addition to vitamins, minerals and supplements as well as therapeutic oral health.

It also has an extensive geographical footprint with a presence in over 100 markets, including leading positions in the United States, India and Germany.

Haleon’s closest competitors in the over-the-counter drug, vitamin and oral care markets are Procter and Gamble, Colgate-Palmolive, Johnson & Johnson and Bayer.

MANAGEMENT:

Dave Lewis, former chief executive of British supermarket group Tesco and before that head of personal care at Unilever, has been named chairman of Haleon.

Brian McNamara will be its chief executive, a position he has held since 2016 with the company at GSK.

Other Haleon board members have experience at companies such as Unilever, LVMH, L’Oreal and Diageo, and there are also two Pfizer board members to reflect his involvement from 32%.

($1 = 0.8455 pounds)

(Reporting by Natalie Grover in London; Editing by Tomasz Janowski)

By Natalie Grover

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