Hedge fund Bluebell asked GSK . US) replaced the chairman and CEO, saying the chairman had no precise understanding of the stock weakness

Hedge fund Bluebell Capital Partners has asked GSK .com. US) to replace its chairman and chief executive officer. It is understood that the hedge fund has a history of working with hedge fund Elliott, who also holds a significant portion of the company's shares. The move will put further pressure on the drugmaker, which Bluebell chief investment officers Marco Taricco and Giuseppe Bivona reportedly made in a letter to the company.

Last month, the company bought about £10 million ($14 million) worth of GlaxoSmithKline shares, but for a company with a market capitalisation of more than £71 billion, it was only a small fraction. Marco Taricco and Giuseppe Bivona said Jonathan Symonds, chairman of GlaxoSmithKline, "has no precise understanding of the reasons for the serious long-term underperformance of the company's stock." "We have come to the conclusion that shareholders need a more radical reform agenda than previously envisaged."

GlaxoSmithKline is understood to have been defending its long-term strategy in recent months. In April, another hedge fund, Elliott Investment Management, bought the company's stock. Elliott has long advocated for GlaxoSmithKline to sell or spin off part of its business. For now, while Elliott and Bluebell have largely agreed with the company's plan to divest the consumer health division, they have questioned the decision to keep CEO Emma Walmsley at the helm. Some media quoted people familiar with the matter as reporting that the consumer health care business that GlaxoSmithKline is preparing to spin off has attracted the interest of several private equity firms.

GlaxoSmithKline responded in a statement: "We completely reject the contents and statements contained in this letter." "We remain absolutely focused on addressing the root causes of the company's poor performance in the past." GlaxoSmithKline also said its board is confident that "the company is in the right strategic direction and has the right team in place to help the company achieve a phased shift in growth." ”

Hedge fund Elliott Investment Management has been questioning CEO Emma Walmsley. Elliott argued that Wormsley lacked a professional background and urged the British drugmaker to be more open to selling the consumer healthcare business.

Just last week, GlaxoSmithKline Chairman Symonds held a meeting with investors, and Gordon Singer, head of Elliott Investment Management's London office, once again questioned GlaxoSmithKline's performance.

It is reported that GlaxoSmithKline is expected to appoint a new head of consumer health care business at the end of the year and plans to move the company's headquarters to the new campus after the spin-off.

As of press time, the company's shares were up 2.90% ahead of hours at $39.359 per share.