Emma Walmsley assumed the role of chief executive at GlaxoSmithKline (GSK) in 2017 and has implemented significant changes during her tenure. One notable shift was the demerger of the consumer health division, resulting in the formation of Haleon in 2023. This move effectively ended discussions about the need for a larger separation of GSK. Additionally, the company has doubled its annual budgets for research and development in pharmaceuticals and vaccines, addressing long-standing concerns about its competitive position in the market.
To facilitate these changes, GSK reduced shareholder dividends, acknowledging that high levels of borrowing were limiting its ability to invest and license promising drug candidates. Revenue growth through innovation is critical in the pharmaceutical sector, and changes were deemed necessary by shareholders, particularly after failed efforts by Elliott Management to oust Walmsley in 2021.
Despite these efforts, GSK’s share price has remained relatively stable, with fluctuations occurring over the years. As of Monday, the share price was approximately £15.25, roughly matching its value at the start of her tenure. Throughout this period, Walmsley faced challenges, including the impact of the COVID-19 pandemic, which disrupted vaccination efforts for shingles, and litigation related to the heartburn drug Zantac.
Currently, there is skepticism about GSK’s ability to achieve Walmsley’s ambitious revenue targets, intended to indicate a significant performance shift. The company has raised its projections, aiming for over £40 billion in revenue by 2031, contingent on the success of multiple upcoming products. In contrast, analysts predict revenues closer to £35 billion by then, primarily due to a major HIV treatment going off-patent.
This discrepancy highlights a credibility gap surrounding Walmsley’s plans. With her expected departure, questions remain regarding the future performance and direction of GSK, and whether the company can sustain its recent momentum. The definitive assessment of Walmsley’s leadership will likely depend on the forthcoming product launches and their impact on the company’s financial performance.
Source: https://www.theguardian.com/business/2025/sep/29/emma-walmsley-steadied-gsk-but-doubts-linger-over-growth-targets