GlaxoSmithKline plc’s (GSK) American depository receipts surged on Friday, July 20, following a Financial Times report that the pharmaceutical giant’s chairman Philip Roy Hampton is mulling a breakup of the firm.
Hampton is considering a split-up after some of the company’s large shareholders urged the board to think about spinning off the consumer unit, the report stated. The publication added that Hampton has talked to some shareholders about creating a standalone pharmaceutical and vaccines firm in the medium term.
GSK’s ADRs jumped as much as 4% to $42.32 on the heels of the report.
A GSK representative did not immediately return a request for comment.
In June, GSK completed its purchase of Novartis AG’s (NVS) 36.5% stake in their consumer healthcare joint venture for $13 billion.