Shares in GlaxoSmithKline plc (LON:GSK) dropped after it appointed a new chief executive to replace Andrew Witty.
The stock drifted 2.5p to 1643p as the drug giant said the chief executive of its consumer healthcare arm, Emma Walmsley, would succeed Witty when he steps down at the end of next March.
Analysts said the drop was likely to reflect disappointment in some quarters that GSK had appointed an insider rather an external candidate who would break up the business.
Joe Walters, senior portfolio manager at Royal London Asset Management, one of GSK’s 30 largest investors, said GSK's choice of Walmsley suggested a strategy of evolution rather than revolution.
"A big change in the firm’s corporate structure is less likely, but any worries about a reduction in Glaxo’s attractive dividend payments should recede," Reuters quoted him as saying.
Walmsley joined GSK in 2010 from French luxury goods group L’Oréal where, over the course of her 17-year career, she held a variety of marketing and general management roles in the UK, Europe and US.
From 2007 she was based in Shanghai as consumer products general manager for L’Oréal China.
She is likely to face questions over her plans for GSK given that Witty has had to rebuff demands from some shareholders to break up the business.
Chairman Philip Hampton described the selection process as global, thorough and rigorous.
"Under Andrew’s leadership, GSK has successfully developed into a company with market-leading positions in pharmaceuticals, vaccines and consumer healthcare," he said.
"These provide excellent platforms for sustainable, long-term growth, and we are confident Emma will successfully build on these strengths.”
Walmsley said: "We have momentum in the group and as the demand for medical innovation and trusted healthcare products continues to rise, we have the opportunity and the potential to create meaningful benefits for patients, consumers and our shareholders."