GSK’s consumer healthcare spinoff will launch on the London stock market on July 18 with a new name, a new CEO and around 10.3 billion pounds of debt.
That's according to a report on This is Money, a U.K. finance website, which cites numbers from analysts at Barclays and Jefferies. The standalone company, to be named Haleon, will market popular brands such as Sensodyne toothpaste and pain reliever Panadol.
Haleon will have a “significant” debt load upon launch, or around four times its estimated earnings for this year, Barclays analysts wrote, according to the publication.
Jefferies analysts called the amount of debt “notably high” but said that the company could benefit from its position as a “largely unique asset," This is Money reports.
The company is expected to reach a valuation between 38 billion pounds and 45 billion pounds when it lists, despite GSK's move to reject a prior purchase offer for 50 billion pounds from U.K. consumer goods giant Unilever.
At GSK, the consumer unit's 2021 sales reached 9.6 billion pounds ($13 billion). It will eventually have its own headquarters in Weybridge, U.K., about 20 miles southwest of central London. The campus will be eco-friendly and is expected to open at the end of 2024.
Haleon will serve more than 100 markets worldwide and has an established presence in “all key channels," GSK said in an introduction of the company to investors. Its R&D network will consist of three centers employing 1,400 scientists.
Over the last three years, the unit has delivered more than 19,000 regulatory applications and approvals. Haleon expects to achieve organic sales growth in the 4% to 6% range in 2022.
GSK will retain up to 20% of its holding in Haleon. The pharma giant has said it plans to sell Haleon shares "in a disciplined manner."