The natives are restless and ready for a butchering. Inspired by lackluster stock performance, GlaxoSmithKline's institutional shareholders are demanding big changes--perhaps even a break-up of the company-- according to London newspapers.
The investors aren't happy about the company's performance since a 2000 merger between Glaxo and SmithKline, and they're questioning whether the enormous company is nimble enough to develop new medicines. They want Glaxo Chairman Sir Christopher Gent to choose a radical successor to CEO Jean-Pierre Garnier, who's set to retire in May 2008--and for that successor to consider any and all options to streamline and overhaul the company.
A big source of fuel for the investors' fire has to be a report released by Citigroup earlier this year, which suggested breaking up Glaxo could return some $20 billion to shareholders.
- read the article [1] on GSK from The Guardian
Related Articles:
GSK inks $1.5B dollar pain deal with Targacept. Report [2]
GSK sees success with RLS campaign. Report [3]
Links:
[1] http://observer.guardian.co.uk/business/story/0,,2160446,00.html
[2] http://www.fiercebiotech.com/story/gsk-inks-1-5b-dollar-pain-deal-targacept/2007-07-27
[3] http://www.fiercebiotech.com/story/gsk-sees-success-with-rls-campaign/2006-10-25