Glaxo Abandons HIV-Unit Spinoff Plan, Reduces Capital Payout

GlaxoSmithKline Plc shares rose as the U.K.’s biggest drug company abandoned plans to spin off its flourishing HIV-drugs unit and reduced funds to be returned to shareholders, retaining capital for bolstering growth.

The decision to retain its full stake in ViiV Healthcare, an HIV joint venture with Pfizer Inc., reflects the unit’s “very positive outlook,” Glaxo said. The London-based drugmaker also predicted a “significant recovery” in earnings next year, and said it will accrue more than half the savings from a Novartis AG deal in 2016, a year ahead of schedule.