GSK's interest in expanding consumer healthcare business concerns investors

In its 3Q17 earnings call, GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) reiterated its strategy to expand its consumer healthcare business, sparking investor concerns of a possible dividend cut. GSK lost $2.29 to $38.19 in New York, and 83.50p to 1,429p in London.

On a conference call Wednesday, CEO Emma Walmsley said while the company's priority is capital allocation for its pharmaceuticals business and R&D, it would be looking to bulk up its consumer healthcare unit. When pressed on GSK's interest in purchasing the consumer healthcare business of Pfizer Inc. (NYSE:PFE) even if its dividend had to be "sacrificed," Walmsley said it is "too premature and hypothetical to respond," adding that she was "focused on driving shareholder value." ...