8th January 2016
Veteran fund manager Neil Woodford has called for the break up for pharmaceutical giant GlaxoSmithKline.
The influential fund manager and founder of Woodford Investment Management told the BBC Radio 5’s Wake Up to Money that GSK should be split into separate companies rather than being run as a giant £65 billion company.
He said the pharma behemoth was ‘like four FTSE 100 companies bolted together’ and that it does not ‘do a particularly good job of managing all of the constituent parts’.
Woodford (pictured) argued that splitting the company would allow the executives to focus on what they are good at.
‘We’d like the business to recognise that it should focus on certain activities in the portfolio and do them better than they have done in the past, demerge the bits they haven’t managed particularly well and let other people who specialise in those activities run those businesses,’ he said.
Breaking up the group would be a radical step but Woodford said ‘the sum of the parts is worth more than the current share price’.