GlaxoSmithKline Plans Spinoff Of Consumer Healthcare Unit

Goldman Sachs and Citi are working with GlaxoSmithKline on a new listing for a spinoff of its consumer unit, Bloomberg writes.

The companies will also help with Glaxo’s defense against the possibility of an activist campaign from Elliot Investment Management, which is helmed by billionaire Paul Singer.

Emma Walmsley, the head of Glaxo, said the division, which is known for its production of things like Aquafresh toothpaste and Nicorette gum, would be listed in mid-2022 on the London Stock Exchange.

The company also plans to keep as much as 20 percent of the business, intending to sell at a later date. And with the remainder of the company, GlaxoSmithKline plans to cut down on its dividend for the rest of the business by 30 percent, which will include a bigger strategy by the company to narrow its focus — now, it will work more intensely on cancer and HIV drugs, as well as drugs for other diseases.

Elliott has built up a formidable position in the drug-making company, although the New York-based hedge fund hasn’t said what types of change it plans to seek at the company. The firm’s history is steeped in things like the healthcare space, where it’s advocated for the sale of Alexion Pharmaceuticals before its sale to AstraZeneca last December, and sought changes for companies including Alkermes, Allergan, Beyers and others.

Citi has recently put out a new unit devoted just to cryptocurrency, according to a report from The Block Crypto.

That report said the new group will be called the Digital Assets Group, and will sit within the company’s wealth management division. The unit will be led by Alex Kriete and Greg Girasole, and will make Citi the newest bank behind companies like Morgan Stanley and Goldman Sachs to roll out ways for wealthy clients to utilize cryptocurrency.

The Block Crypto said the new unit will “work in tandem with our functional partners and the broader Capital Markets and Citi Investment Management teams to develop a robust and scalable value proposition.”