Expert comment on GlaxoSmithKline’s first quarter results

Time is not on the side of GlaxoSmithKline’s (LSE: GSK) chief executive Sir Andrew Witty, according to John Lyon, of Warwick Business School, who is a Professor and a former global vice president of US drug development company Covance, commenting on the pharma major’s financial results yesterday.

Prof Lyon said Sir Andrew “leads a company with a dull share price, and lots of ‘hope value’. He is pinning his hopes on a turnaround of fortunes from 2016 onwards, while on-going restructuring seeks to take redundant costs out the business. It is likely he may not have that much time to prove himself, as investors become impatient.”

“It is interesting to observe the background of the new chairman, Philip Hampton, who led the board of RBS plc after the UK taxpayer bailout, and before that Sainsbury’s plc. He is due to replace the current chairman, Christopher Gent, this week. He is not a stranger to large scale change, large challenges and restructuring boards - as evidenced through his reign at RBS.”