GlaxoSmithKline plc CEO Emma Walmsley pledged her commitment to the U.K. pharmaceutical group's dividend and said there is no immediate need for a large scale deal — such as the consumer assets of Pfizer Inc. which are up for sale — as her first priority is to strengthen the pharmaceutical pipeline organically.
"You would expect us to take a serious look at any leading asset in the sector," Walmsley told reporters on a conference call following full-year and fourth-quarter results for 2017. "But again, our first priority is pharmaceuticals, that remains our priority. This is not a need to do, we're very happy with our consumer business."
The CEO said that other than Advair generics, which may be launched in 2018, the Brentford, London-based group will not be faced with other generic threats to its best-selling medicines until the mid-2020s. Guidance for 2018 indicates EPS growth of 4% to 7% if no generic version of its blockbuster asthma Advair treatment hits the market, but that slows to a 3% decline should a cheaper copycat version be introduced at mid-year.
Elsewhere, Walmsley signaled that the management shake-up, which resulted in a 40% change at the top of Glaxo and some notable external appointments such as Hal Barron to head up research and development and Luke Miels from AstraZeneca PLC, is set to continue through 2018. She said Barron, a former Roche Holding AG scientist and executive before joining Alphabet Inc.'s Calico, will undertake a review of GSK's global research projects and will update the market on his plans for GSK's R&D at the second-quarter results.
Sales for 2017 came in at £30.2 billion, with pharmaceuticals accounting for £17.3 billion, boosted by a strong performance in respiratory and HIV. Shingles vaccine Shingrix, which received U.S. Food and Drug Administration approval and a "landmark" preferential recommendation for people aged 50 years and above, got off to a good start and will become GSK's biggest vaccine, Walmsley said.
"Improving our pharmaceuticals business remains our main priority and we are strengthening our pipeline with a focus on priority assets in two current therapy areas, respiratory and HIV, and two potential areas, oncology and immuno-inflammation," Walmsley said.
A dividend of 80 pence will be paid for 2017, and Walmsley pledged to keep it at the same level in 2018.
