GSK share price subdued as CFO unveils plans to step down

Pharmco to search for successor to Simon Dingemans

GSK share price subdued as CFO unveils plans to step down

Shares in GlaxoSmithKline (LON:GSK) have fallen into the red in London today, as the blue-chip drugmaker announced that its finance chief was planning to step down next year. The news follows the group’s first-quarter results at the end of last month when the company disclosed a fall in profit and turnover, having suffered from a rise in the pound.

As of 13:29 BST, GSK’s share price had lost 0.75 percent to 1,460.40p, underperforming the benchmark FTSE 100 index which has climbed into positive territory and currently stands 0.47 percent higher at 7,601.48 points. The pharmco’s shares have lost more than eight percent of their value over the past year, as compared with about a 3.5-percent rise in the Footsie.

Simon Dingemans to step down

GSK announced in a statement today that its chief financial officer Simon Dingemans had informed the company’s board of his plans to step down in May 2019. The blue-chip drugmaker noted that its board would “now conduct a thorough global search both internally and externally to identify a successor”.

“Since joining GSK, Simon has played a very significant role in shaping the Company. He has taken a consistent and sustained approach to support investment and improve operational efficiencies in all 3 of our global businesses,” the drugmaker’s chief executive Emma Walmsley commented in the statement.

The FTSE 100 group noted that  Dingemans’ departure was voluntary and therefore he will not receive any severance payment when leaves the group.

Analysts on blue-chip pharmco

Deutsche Bank, which has a ‘neutral’ rating on GSK, set a price target of 1,420p on the shares at the end of last month. According to MarketBeat, the blue-chip pharmco currently has a consensus ‘hold’ rating and an average price target of 1,536.19p.

As of 13:56 BST, Wednesday, 09 May, GlaxoSmithKline plc share price is 1,458.87p.

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