By Ian Walker and Cecilia Butini

GlaxoSmithKline PLC on Tuesday named its new independent consumer healthcare company Haleon and said that the business is on track to demerge and list as a separate company in the middle of this year.

The pharmaceutical giant said that the business will offer investors attractive organic sales growth, operating margin expansion and consistent high cash generation.

Glaxo will host a consumer-healthcare capital markets day on Feb. 28, where it will provide details on the overall strategy, capabilities and operations of Haleon, including detailed financial information and growth ambitions of the business.

"Haleon has enormous potential to improve health and wellbeing across the world with strong prospects for growth, and through listing will unlock significant value for GSK shareholders," Chief Executive Emma Walmsley said.

Glaxo said that Haleon is inspired by the merging of the words 'hale', which means in good health in old English, and 'leon', which is associated with strength.

The business includes well-known brands such as Sensodyne and Voltaren, and the new brand identity will be deployed in the more than 100 markets in which it operates, the company said.

Haleon will be headquartered in Weybridge, U.K., and is expected to have a premium listing on the London Stock Exchange, with American Depository Receipts to be listed in the U.S.

Brian McNamara has been appointed chief executive officer designate and Dave Lewis as nonexecutive chairman designate of the new company.

The separation of the consumer-healthcare business, which is still subject to shareholder approval, is set to take place by way of a demerger of at least 80% of the company's 68% holding in the unit to GSK shareholders.


Write to Ian Walker at ian.walker@wsj.com


(END) Dow Jones Newswires

02-22-22 1020ET