GSK plans to rebuild battered company

GlaxoSmithKline, battered by weak US drug sales and a bribery scandal inChina, set out a bold recovery plan yesterday, including an initial public offering of part of its fast-growing HIV and AIDS drugs business.

As a standalone company ViiV Healthcare would be among the top 40 companies in London’s FTSE 100 index, outranking Marks and Spencer, GSK chief executive Andrew Witty told reporters. Analysts at Jefferies said they valued the HIV and AIDS division at about £17bn (€21.6bn).

Announcing third-quarter results, Britain’s biggest drugmaker also set out the latest in a string of cost-cutting programmes and said that its 2015 dividend is expected to be kept at the same level as this year’s 80p a share.