In an unexpected announcement that has sent the share British pharma major GSK higher by more than 3 percent during trade in London stock exchange, the Chief Executive Office Emma Walmsley is stepping down after an almost nine-year tenure, and will be replaced by Chief Commercial Officer Luke Miels, who will take over with effect from January 1, GSK said on September 29.
Shares of GSK Pharma, a listed Indian healthcare company part of the British multinational company fell sharply after the announcement, but steadied soon after, to trade lower by a quarter of a percent.
Trump's Tariff Threat
The development comes at a time when US President Trump has announced fresh tariffs on global branded pharma majors, though GSK has said it plans to invest $30 billion in the United States over the next five years. GSK has been attempting to grow in the US market and has pledged significant investment in this direction.
GSK Plc Gets a New CEO
Walmsley called 2026 a 'pivotal year for GSK' that could 'define' its path for the decade ahead, adding that the time is right for new leadership.
"As CEO, you hope to leave the company you love stronger than you found it and prepare for seamless succession. I’m proud to have done both - and to have created Haleon, a new world-leader in consumer health. Today, GSK is a biopharma innovator, with far stronger momentum and prospects than nine years ago," CEO Emma Walmsley said in a company statement.
"GSK today is necessarily very different to the company she was appointed to nine years ago and has a bright and ambitious future. The company is performing to a new, more competitive standard, with performance anchored in a stronger portfolio balanced across specialty medicines and vaccines," GSK Plc's chairman, Sir Jonathan Symonds said.
"He (Luke Miels, the CEO-designate) has outstanding global biopharma development and commercial experience, together with a deep understanding of the company, its prospects and its people. He is extremely well placed to lead, deliver and surpass the ambitions we have set for GSK, and to generate new growth and value for patients and shareholders," the chairman added.
Luke Miels, GSK's CEO-Designate
Luke has been with GSK since 2017, handling the world-wide responsibility for medicines and vaccines. The company statement said he has been 'instrumental' in building GSK’s specialty medicines portfolio in oncology and
respiratory. Calling him an 'experienced global biopharma leader', GSK mentioned that Luke has worked at senior levels in the US, Europe and Asia, at AstraZeneca, Roche and Sanofi-Aventis, prior to joining GSK.
Succession Plan at Work
GSK said Luke’s appointment has been a result of effective 'long-term succession planning' by the Board as well as outgoing CEO Emma. The process has been an outcome of a 'rigorous process' that has also involved external support, carried out over the 'last few months'. The process considered both internal and external candidates, GSK mentioned.
"...the next CEO must be to deliver shareholder value and value recognition through strong focus on pipeline delivery, exceeding the 2031 outlooks, and preparing for the next wave of R&D through ambitious adoption of technology and championing of exceptional patient outcomes," GSK statement said, referring to the selection criteria.
Past Tussle with Elliot Investment
Nearly four years ago, CEO Walmsley had faced criticism from activist investor Elliott Investment Management, which urged the company to improve pharma expertise in leadership position and had questioned Walmsley’s lack of past experience in pharma business.
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