After the multinational pharmaceutical company spins off its business, it will set up a new company to go public

Recently, GlaxoSmithKline (GSK) officially announced that it will spin off its consumer health division and set up a new company, Haleon
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It is reported that Haleon is a joint venture between GSK and Pfizer, with GSK owning a 68% majority stake and Pfizer holding a 32% stake
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The combined product portfolio of the new company will include Advil, Tums, Sensodyne toothpaste, Excedrin and Nicorette chewing gums, as well as brands such as Voltaren, Panadol and Centrum
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It is understood that Haleon will be headquartered in Weybridge, England, and intends to be listed on the London Stock Exchange
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Going forward, the new company's pharmaceutical business will be driven primarily by vaccines and specialty therapies
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In addition, the company will focus on four core therapeutic areas, including infectious diseases, HIV, oncology and immunology/respiratory systems
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Regarding the spin-off to create a new company, GSK said that Haleon is expected to be operational by mid-2022, and is expected to bring in annual sales of about $46 billion by 2031 and achieve more than 10% of its operations in the next five years.
Profits continue to grow
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It is worth noting that in addition to GSK, in fact, many pharmaceutical companies have experienced spin-offs in recent years
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For example, in September 2021, AstraZeneca announced that it will spin off its digestion and respiratory business in China
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The main reason for the spin-off is that its core product "budesonide inhaler" was eliminated in the fifth round of national centralized procurement, the market share plummeted, and the profit margin peaked
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In 2020, Merck announced the split plan, the tumor, in-hospital products, vaccines and animal health businesses will continue to be retained, while a new company will be established for women's health products, mature products and biosimilar products and listed independently, which is expected to be completed in the first half of 2021.

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As early as 2019, Pfizer had separated from its generic drug business
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In this regard, Pfizer Chairman Albert Bourla said: the divestiture of generic drugs is to allow Pfizer to focus on innovation
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In addition, a series of foreign companies such as Merck, Novartis, and Roche have also split their businesses
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From the above overall point of view, the divestiture of some businesses and spin-off of subsidiaries has been regarded by pharmaceutical companies as a manifestation of focusing on vertical business
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Those pharmaceutical companies with strong scientific research strength and large scale are expanding financing channels and promoting the follow-up development of enterprises through spin-off and listing
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It is understood that, in fact, in China, spin-off listing has become an important means of optimizing resource allocation in the capital market.
Since December 2019, the China Securities Regulatory Commission issued the "Several Regulations on the Pilot Program of the Spin-off of Subsidiary Subsidiaries of Listed Companies" It is common for companies to "split", including Dean Diagnostics, GenScript Biotechnology, Yan'an Bikang, Liaoning Chengda, Hualan Bio, Tasly, Changchun High-tech, Livzon Group, Kelun Pharmaceutical, etc.
have all announced Spin off subsidiaries
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On the whole, the business segments of the spin-off of domestic pharmaceutical companies mainly involve biological innovative drugs such as diagnostic reagents and vaccines
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These pharmaceutical sectors have high independence and bright investment prospects
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In this regard, the industry believes that under the general trend of innovation in the pharmaceutical industry in the future, pharmaceutical companies, especially traditional pharmaceutical companies, will become more and more keen to spin off the innovative drug business sector
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Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
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