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Following a less than flattering financial performance in 2014, GlaxoSmithKline (GSK) is realigning its operating structure with its corporate objectives and cashing in on its assets in the process, as the company seeks to drive up external investments and deliver stronger shareholder returns in the long term.
Excluding divestments, GSK's total revenue fell by 10 percent year-on-year while operating profits were down by 15 percent on a pro forma basis in 2014.
While the growing strength of the pound sterling was largely to blame for lower revenues through the first three quarters of the year, a large proportion of the company's decline was inorganic.
Ms Chloe Thornton, GlobalData's analyst, states that within its central pharmaceuticals business, GSK's greatest growth resistor was by far its flagship respiratory franchise, which fell by 10 percent year-on-year to just over £6 billion ($9.8 billion), excluding currency impacts.
She explained: "GSK invested heavily in developing its respiratory pipeline, but the expectation that it could compensate for the imminent patent cliff facing Seretide/Advair appears optimistic.