Haleon is a leading global consumer healthcare company which was spun from Glaxo Smithkline in 2022. As a dedicated player in the consumer health sector, Haleon focuses on improving everyday health with a portfolio that includes iconic brands such as Sensodyne, Voltaren, Advil, Panadol, and Centrum. The company operates across key categories like oral health, pain relief, respiratory care, and vitamins/minerals/supplements.
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Haleon’s iconic product offering lies in its diverse and scientifically backed portfolio of leading consumer healthcare brands such as; Sensodyne, Centrum, Panadol, Voltaren and Advil. Focus areas include oral health, respiratory, pain relief, digestive health, vitamins, minerals and supplements. These are brands consumer trust and use in their daily lives which generates strong brand affinity.
As a standalone public entity the company to refine its focus and concentrate its resources on the fast-growing consumer healthcare industry. By stepping away from GSK, Haleon gains the flexibility to concentrate on OTC and everyday healthcare products without the complexities of managing pharmaceutical drug development or clinical research. This also creates a cleaner story for investors who are looking for direct exposure to the consumer product business and don't wish to invest in pharmaceuticals. Despite this shift, Haleon inherits the trust and reliability associated with GSK’s, giving it credibility in delivering high-quality, effective health products with decades of expertise behind them. but also meet the high levels of safety, efficacy, and reliability that consumers expect.
Consumer health products tend to be resilient during economic downturns, as many of Haleon’s products are essential or semi-essential items. This offers investors a degree of stability, even in uncertain economic conditions. The company’s strong cash flow and recurring revenue from its wide distribution network across geographies make it an attractive option for investors looking for stable, defensive growth in the healthcare sector.
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Establishing A Track Record
Companies spin divisions that they feel are undervalued inside the corporation, this usually offers investors a chance to get direct exposure to the most valuable assets. Spin-offs are also often underresearched providing a certain degree of discovery value for new investors as the market better understands the potential of the new entity.
New Product Launches
Sensodyne has enjoyed sustained success, driven in part by the launch of innovative products like Sensodyne Clinical White. Looking ahead, Haleon sees significant growth potential in its Parodontax and Corsodyl brands, which focus on treating bleeding gums. Currently available in only 12 markets, these products target a condition with a higher incidence rate than tooth sensitivity, offering substantial growth opportunities for the company. Haleon expects its oral health segment to expand at a mid-to-high single-digit rate, with bleeding gums representing a key area for future development and market penetration.
Ageing Population
The world's population is ageing, leading to an increased prevalence of chronic diseases and conditions that require ongoing management. This demographic shift will drive demand for a wide range of consumer health products, including supplements, pain relief, and chronic disease management solutions.
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Haleon’s commitment to health inclusivity centers on making healthcare both sustainable and accessible. In partnership with Microsoft, the company developed ‘Seeing AI’, a tool designed to assist visually impaired individuals in reading product labels. Haleon also introduced the first-ever Health Inclusivity Index, a pioneering method to consistently track and improve healthcare inclusivity.
The company has implemented various initiatives to make its products more accessible to marginalised communities. For example, the ‘Advil Pain Equity Project’ in the U.S. focused on addressing pain inequities in Black communities by promoting fair access to pain relief. In addition, Haleon is dedicated to sustainability, and has committed to achieving net-zero carbon emissions by 2040 and aims to make all packaging recyclable or reusable by 2025.
Haleon competes with several established global players that have significant resources for marketing and distribution, making it a challenge to maintain market share and leadership in key categories like oral health and pain relief. However, the decision to separate from GSK has proven strategic, allowing Haleon to focus exclusively on consumer healthcare products and capitalise on growth opportunities in these markets. The company is also optimising its portfolio by divesting less profitable assets, such as the sale of Lamisil for £235 million and the recent disposal of ChapStick for $430 million, enabling Haleon to concentrate on its most successful and high-growth brands.
Rising inflation and supply chain disruptions due to geopolitical tensions are increasing production costs. In response to rising costs for raw materials, logistics, and manufacturing, Haleon has increased prices on some of its products. However, these price changes have not significantly impacted profitability, with the company achieving organic revenue growth of 8.0% (reported 4.1%) in 2023, ahead of medium-term guidance.
Haleon's business model revolves around delivering consumer healthcare products across key categories like oral health, pain relief, respiratory care, and vitamins/supplements. As a dedicated consumer health company, its approach is driven by consumer-centric innovation, leveraging scientific research and deep insights to create trusted, everyday health products. A significant aspect of Haleon’s model is its commitment to health equality, ensuring its products are accessible to underserved communities.
Haleon’s main source of revenue comes from the sale of its over-the-counter (OTC) consumer healthcare products, which accounts for 60% of total revenue. Haleon has experienced strong revenue growth since demerging from GSK’s consumer healthcare division in 2022. In 2023, the company reported organic revenue growth of 8.0% (4.1% reported) with an operating profit of £2bn.
Sensodyne, in particular, is a major contributor, being a leader in the sensitive teeth segment and one of the most recognised oral care brands globally. In 2023, Haleon launched 68 new innovations including Sensodyne Pronamel Active Shield and Sensodyne Sensitivity & Gum, which were named as the top two innovations in the US toothpaste market.
Haleon’s single-minded focus on consumer healthcare gives it a sharper competitive edge in this sector, helping it to maintain consistent growth in oral health and pain relief segments. Sensodyne, in particular, dominates the sensitive teeth segment, making Haleon a market leader in oral healthcare. Competitors like Colgate remain strong, but Haleon has a niche advantage in addressing specialised needs like sensitivity and bleeding gums. Brands like Voltaren, Panadol, and Advil help Haleon compete effectively in the OTC pain relief market, which includes rivals such as Johnson & Johnson (Tylenol) and Bayer (Aspirin). Voltaren's leadership in topical pain relief is a standout, particularly after it became available over-the-counter in several key markets like the U.S.
Haleon
Updated October 2024
LSE:HLN
GBp354.100.94%
33.00b
20.64
22m
Pricing delayed 15 mins. Nov 2, 2025 5:00 AM