GSK gives roadmap for potential 2016 listing of HIV drugs business

By Ben Hirschler

LONDON (Reuters) - GlaxoSmithKline (GSK.L) set out a roadmap for a potential 2016 flotation of its HIV medicines business on Wednesday as it hired three leading banks to advise on what would be the drug industry's largest ever initial public share sale.

Chief Executive Andrew Witty said his company would take the next two to three months to analyse the pros and cons of an initial public offering (IPO), as well as deciding how much of ViiV to sell and where to list the shares.

The GSK board would then decide around mid-year whether to go ahead with the float, allowing the company to give shareholders an update on plans at second-quarter 2015 results.

Assuming a positive decision, the management team to take ViiV public will be confirmed and executives will spend time meeting would-be investors.

"They need to have time to talk to investors well in advance of the potential flotation and by the time you've done that you are now into 2016," Witty told reporters on a full-year results conference call.

GSK has hired Citi, Goldman Sachs and Morgan Stanley as financial advisers on ViiV, according to sources familiar with the matter.

GSK declined to comment on its advisers.

The drugmaker first announced in October it was looking to float its fast-growing HIV drugs operation business as part of a plan to reshape its business and Witty told Reuters earlier this month that ViiV could serve as a model for future moves.

The British group has a stake of nearly 80 percent in ViiV Healthcare, with Pfizer (PFE.N) and Shionogi holding the rest.

Analysts have anticipated a market value of between 12 billion and 18 billion pounds ($18-27 billion) for the business, although the final price will depend on the commercial success of ViiV's new HIV treatments.

GSK said on Wednesday that sales of two key HIV drugs, Tivicay and Triumeq, were running at higher levels than expected, helping push overall ViiV sales 15 percent higher to 1.5 billion pounds in 2014.

(Editing by Elaine Hardcastle)