British drugs group GlaxoSmithKline is planning to create a new £15bn FTSE 100 company by spinning out a subsidiary focused on treating HIV.
Viiv Healthcare is expected to attract a “significant” capitalisation due to its rapid growth according to chief executive Sir Andrew Witty.
ViiV’s newest HIV medicines, Trumeq and Tivicay, have debuted in the last year. Sir Andrew described the debut as “one of the most successful new product launches in the category”. The group’s portfolio includes 11 other HIV medicines, with one other currently in clinical trials.
ViiV, based in West London, has grown to 674 employees across 15 countries and Witty said it would be ranked in the FTSE 100 somewhere between the top third and number 40.
Witty said: “This is not a forecast, but this business will make a £1bn profit this year if you simply grossed up the nine months’ year-to-date on a straight line basis. That, I think, tells you straight away what the kind of underpinning profit number of this business might be.”
GSK and its US rival Pfizer established ViiV Healthcare in 2009 by combining their HIV research efforts. In 2012, Japanese drug maker Shinogi, already a research partner, also bought a stake in the company.
Article | Levi Joule