GSK to cement split with two new headquarters By Reuters
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(Reuters) – GlaxoSmithKline (NYSE:) on Monday laid out plans for a new, 120 million pound ($164 million) headquarters for its soon-to-be-independent consumer healthcare business and also said its remaining pharmaceuticals and vaccines staff will relocate.
GSK will be divided in half in the middle next year, in what is expected to be its largest shake-up since two decades. This includes the Consumer Healthcare arm and a joint venture with Pfizer (NYSE:) Known for its brands like Advil painkillers and Sensodyne toothpaste, NYSE has been separate listed.
The new headquarters, which will include research and development facilities, will be constructed in Weybridge (southwest of London) to accommodate 1,400 employees starting at the end 2024.
When the split occurs in mid-2022, however, employees will be relocated from GSK’s Brentford corporate headquarters, west London to temporary Weybridge facilities.
Weybridge is already home to a GSK oral health research and development (R&D) site and Procter & Gamble (NYSE:) has an operation in the area..
The rest of GSK’s Brentford staff, working for the pharmaceuticals and vaccines business, will move to an as-yet-undetermined site in the same area at the end of 2023 or later, with the pharma giant saying it would be “maintaining access to the UK’s world-leading science and innovation hubs”.
GSK indicated that they would continue to update the site in mid-2022.
GSK House is the Brentford headquarters. It was constructed in 20 years after SmithKline Beecham and GlaxoWellcome merged to create GSK. It was not large enough to accommodate either of their successors, according to spokesperson.
Relocating can be thorny as evidenced by years of delays in building AstraZeneca (NASDAQ:)’s new corporate centre and large R&D campus in the English university city of Cambridge.
The initial unveiling of the plan was in 2013. It cost 330million pounds. However, the goal was to open the centre in 2016. Construction took place until 2020. By then the costs had risen to around 1 billion.
GSK’s consumer health business listing will result in a 8 billion pound (or $11 billion) gain and financial rewards that will support drug development at the company.
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