The boss of AstraZeneca has urged Dame Emma Walmsley, the embattled chief executive of its rival GlaxoSmithKline, to stick to her guns in transforming the London-listed drugs group.
In June, GSK announced eagerly awaited plans that include separating its consumer healthcare business from its vaccines and pharmaceuticals divisions, by spinning off and listing the former on the London Stock Exchange next summer. Walmsley, 52, also pledged to continue leading the business.
Her strategy has faced criticism from Elliott Management, the activist investor that in April was revealed to have built a significant stake in the group. While the American hedge fund has voiced its support for the consumer separation, it has urged the board to consider a sale of the division.
Pascal Soriot said that Walmsley should stick to her plans. “If you are challenged by another company, the key is to have a good plan and stick to it and implement,’ he told the Daily Mail.
In July, Elliott wrote to Sir Jonathan Symonds, GSK’s chairman, urging the board to appoint non-executive directors with “deep biopharma and consumer healthcare expertise” before the separation of the consumer business, effectively raising questions over Walmsley’s leadership.
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Soriot, 62, said: “You don’t necessarily need to be a scientist. Over the years, very smart people will gain the knowledge and will be able to be fluent in discussions with scientists.”
GlaxoSmithKline’s shares have substantially underperformed those of AstraZeneca and other drugs companies since Walmsley took over in April 2017. The group has been criticised over its drugs and vaccines pipeline and over delays in producing a coronavirus vaccine. However, last month it revealed that sales of its Covid-19 “solutions” had generated $276 million in sales in the first half of the year, the bulk of which were from adjuvant sales to partner drugs companies.
GSK declined to comment on Soriot’s remarks.
The AstraZeneca chief also urged directors of UK-listed companies to take a tougher stance amid a recent spate of takeover attempts He said he found it hard to understand why independent directors had failed to put up a more robust defence. “Senior non-executives seem not to have stood up,” he said.
