GlaxoSmithKline Plc revealed in an official statement today that it will appoint Mr. Philip Hampton as next chairman to succeed Christopher Gent at a time when the company is trying to deal with downbeat sales in the U.S. and a bribery fine in China.
Mr. Philip Hampton, currently chairman of Royal Bank of Scotland Plc, will leave Britains largest state-owned lender in 2015 after a suitable successor is found. He will join the board of GlaxoSmithKline as a non-executive director on January 1st 2015 and become deputy chairman on April 1st, before replacing his predecessor Mr. Gent effectively on September 1st.
“This appointment may signal that further management changes could follow,” Morgan Stanley analysts commented in a report, which was cited by Bloomberg. “Combined with the recent resolution of the Chinese investigation, this appointment will likely please investors urging changes at GSK and trigger hopes of a new equity story.”
In May this year, Mr. Gent, who is also a former CEO of Vodafone Group Plc, said that he plans to step down by the end of 2015 and that Glaxo was looking for a replacement.
Mr. Hamptons appointment comes only a few days after a Chinese court found the UK-based company guilty on charges of bribery and imposed a $489-million fine on the drugmaker.
GlaxoSmithKline Plc added 0.74% to trade at GBX1 439.0 per share at 11:56 GMT in London, marking a one year change of -9.84%. The company is valued at £69.28 billion. According to the Financial Times, the 24 analysts offering 12-month price targets for GlaxoSmithKline Plc have a median target of £15.86, with a high estimate of £19.20 and a low estimate of £13.50. The median estimate represents a 10.99% increase from the previous close of £14.29.
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