Benzinga | Jul 2, 2021 11:49AM EDT

GlaxoSmithKline's Board Backs CEO Walmsley After Elliott's Letter For Management Shakeup

* GlaxoSmithKline plc (NYSE:GSK) said its board sees Chief Executive Emma Walmsley as the right person to lead its pharmaceutical business after the upcoming split with its consumer-health unit.

* The board "fully supports" the steps she's taking to improve performance, GSK said in a statement Friday.

* After amassing a stake in Glaxo in its first public comment, Elliott called on Thursday for board changes ahead of the planned separation of GSK's businesses.

* It asked Glaxo to launch a process to decide whether Ms. Walmsley should continue to lead the company. Elliott also criticized the company's recent performance under her leadership.

* In its response, GSK noted that it had already appointed two new non-executive directors to the board in the last 18 months. The company intends to add new faces to the team ahead of the separation "to increase biopharmaceuticals and scientific experience."

* GSK's board said that it would evaluate any alternative options for the consumer-healthcare unit that may arise.

* Price Action: GSK shares are up 0.13% at $40.22 during the market session on the last check Friday.