New Leadership at GSK Means Changes to the Product Portfolio

The new CEO of pharmaceutical multinational GSK, Emma Walmsley, has completed her "strategic review". As usually happens when such a review is carried out by a new CEO, the result is changes to the shape of the business.

The Independent reports here that Walmsley and her Board have decided to sell more than 130 of its brands as part of a strategy of greater focus on core markets and cost reductions to improve profitability.

The FT reports that GSK will also cut more than 30 research and development programmes and consider the sale of its rare diseases unit. The effect will be to allow GSK to better focus its R&D investment on treatments for respiratory conditions, HIV and infectious diseases - all identified as key growth opportunities.

GSK aims to reduce total annual operating costs by £1bn by 2020.