Summit News

Glaxo says future IPO possible for ViiV

NEW YORK (Reuters) - An HIV company set up a year ago by GlaxoSmithKline Plc GSK.L and Pfizer Inc PFE.N could be spun off and floated in an initial public offering once its drug pipeline has matured a little further.

“It’s certainly a possibility,” Glaxo Chief Strategy Officer David Redfern said at the Reuters Health Summit on Tuesday.

The creation of ViiV Healthcare marked an unusual drug industry collaboration because of the way in which it pooled the two companies’ HIV/AIDS operations into a new business majority owned by Glaxo.

“If it becomes clear to GSK and Pfizer that giving the company even more independence and its own access to the capital markets makes sense, then we would be very open to doing that,” Redfern said.

ViiV has a pipeline with several promising new medicines against HIV, which he said needed a bit more time to mature to show full potential.

The jointly owned business could also be a template for other collaborations in different therapeutic areas.

“We are very open to more of those sort of therapy combinations, in the right circumstances and if we can find the right partners,” Redfern said.

Reporting by Ben Hirschler. Editing by Robert MacMillan