GSK Finance Chief Hands Baton to Successor as Centralization Efforts Bear Fruit

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GSK's incoming CFO will have to tackle the company's debt pile and free up cash to replenish its aging product lineup

GlaxoSmithKline CFO Simon Dingemans will hand over the reins on Monday after eight years in the role. Photo: loriene perera/Reuters By Nina Trentmann April 1, 2019 5:30 a.m. ET

Since Mr. Dingemans came aboard, the pharmaceuticals giant’s finance organization is now much improved, operating on a single enterprise resource management system that ties together a wide range of business processes in a common infrastructure. GSK’s finance team, historically tasked with stewardship, governance and control, has pivoted to striving to provide insightful data needed to make complex business decisions. A more streamlined financial infrastructure means the company has better visibility into its numbers and can more easily find and free up capital across the organization.

As part of that strategy, Ms. Walmsley has prescribed the drug firm a strong dose of cost cuts, portfolio changes and other adjustments aimed at boosting the company’s performance as it faces growing competition from generic drugs. GSK currently uses around 50 software robots and plans to increase that number to around 200 by the end of the year, Mr. Dingemans said. This might mean that GSK will shrink its finance team in the future.

Mr. Dingemans’s successor, Mr. Mackay, will have to tackle a different suite of challenges. One priority is the company’s higher debt pile, which rose as a result of the December acquisition of cancer-drug company Tesaro Inc. for roughly $.4.16 billion. GSK’s net debt was £21.62 billion at the end of 2018, up from £13.17 billion at the end of the prior year.

 

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