GSK picks insider to run consumer health business after spin-off

GlaxoSmithKline has appointed Brian McNamara to lead its consumer health division after the spin-off next year, choosing an internal candidate over several external applicants for the new company that will have annual sales of more than £10bn.

McNamara joined GSK in 2015 from Novartis and has led the consumer unit since its previous head Emma Walmsley was promoted to chief executive. He has overseen the creation of the joint venture with Pfizer’s consumer unit, which owns brands such as Sensodyne toothpaste and Centrum vitamins, as well as preparations for the split.

Some shareholders have suggested whether Walmsley would be better off heading the consumer side of the business, doubtful whether she has the pharmaceutical experience to revamp the lacklustre pipeline of GSK’s drug and pharma business that she will lead after the separation.

GSK is under pressure after US hedge fund Elliott Management took a multimillion-pound stake, criticising years of “under-management” and pushing the board to examine if Walmsley is the right leader for the pharmaceuticals business.

Sir Jonathan Symonds, GSK’s chair, said the board had conducted a “thorough process” in picking McNamara.

“His strong record of success and deep experience of fast-moving consumer goods and consumer health, proven at P&G, Novartis and GSK, means he is the right choice to unlock the potential of consumer healthcare as an independent company,” Symonds said.

The board employed headhunters Spencer Stuart and Egon Zehnder to find potential candidates, interviewing several external and internal applicants. It is now searching for a chair and directors for the board of the new consumer health company.

Elliott has pushed the pharma group to also name new independent directors with scientific experience to the board of “new GSK”, the remaining pharma and vaccines business.

McNamara will be chief executive designate until the spin-off in the middle of 2022, which will see GSK divest at least 80 per cent of its stake to shareholders.

“I am confident we are well positioned for growth, building on our brands and innovation, with leading-edge science and human understanding, to deliver better everyday health,” McNamara said.