Gsk Share Discussion Threads

[essentialinvestor] 26/8/2015 10:22

In this market about everything looks negative Mark.

[garycook] 26/8/2015 10:13

Do not think it will go as Low as 1250 again, but who knows in these Crazy Markets. But looking with a long term view, looks cheap and could go to 1650 when the FTSE recovers. Possible recovery 17% on the FTSE, which equates to £15 for GSK. Agree with EI,and a must in any Portfolio with a 6.25% Dividend yield at present

[supermarky] 26/8/2015 09:58

As 1300+ is not sticking the chart looks negative. I closed my long yesterday just north of 1300 and I'm considering a short position here

[essentialinvestor] 26/8/2015 08:44

Had quite a few this morning, looks a decent price to me, just IMV.
May look expensive by lunchtime given these markets, so a longer term view
on value.

[garycook] 26/8/2015 06:21

Also Down 3% from FTSE Close 4.30 in US ADR,s into the US close ? That would take it down to around 1257.Will be topping up if so.

[tradermichael] 25/8/2015 15:25

Seems like they can't give these shares away at the moment

[essentialinvestor] 25/8/2015 10:02

In again yesterday, looking to add further.

[apfindley] 24/8/2015 15:56

GWMO looking very tasty.More cash in bank than market cap.

[tradermichael] 22/8/2015 14:32

Agree - its another example of how the pundits think they know more than the board.

At the very least, it'll prop up the dividend for a bit longer ....... ;0)

[jadeticl3] 21/8/2015 20:03

I remain long--very long. True this has fallen further than I expected, and I was surprised that a respectable authority (?) today said the large fall was due to the sale of the remaining rights GSK had on ofatumumab. This I cannot understand. I would have expected this to cause a rise.

However, these are short term moves, so I remain long and confident!

[supermarky] 21/8/2015 16:10

1320 long for me

[redips2] 21/8/2015 12:09

Chinese bubble, commodities, oils, all dragging the markets down, but the world will continue to spin and I am still long .

[trulyscrumptious] 21/8/2015 11:46

Is this tanking for any good reason?

[tradermichael] 21/8/2015 09:37

OK, thanks. $300 million up front, and the rest could be an on-going bonus.

[essentialinvestor] 21/8/2015 09:26

Michael not quite, $300 is the guaranteed amount on completion.

All helps.

Getting tempted here.

[tradermichael] 21/8/2015 09:09

Thanks - another $1 billion cash for the war chest, then ............ 0;)

[zzaxx99] 21/8/2015 09:07

yes it is - originally Novartis got the rights for everything except auto-immune diseases, now they have the lot

[tradermichael] 21/8/2015 08:16

Is this sum of $1 bill additional to the deal already done with Novartis? i.e. is it a transaction that wasn't already part of the asset swap?

[masurenguy] 21/8/2015 07:32

Interesting deal !

RNS Number : 7117W
GlaxoSmithKline PLC
21 August 2015

GSK to divest ofatumumab for auto-immune indications to Novartis for up to $1bn plus royalties

GlaxoSmithKline plc (LSE/NYSE: GSK) today announced an agreement with Novartis Pharma AG ("Novartis Pharma"), a subsidiary of Novartis AG, to divest its rights in ofatumumab for auto-immune indications, including multiple sclerosis. Novartis Pharma previously acquired the oncology indications for ofatumumab (Arzerra) as part of the major three-part transaction between GSK and Novartis that completed earlier this year. After completion of the transaction announced today, Novartis Pharma will own rights to ofatumumab in all indications.

The consideration payable by Novartis Pharma to GSK may reach up to $1,034 million and comprises a series of milestone payments as follows:
-- $300 million payable at closing;
-- $200 million payable subject to the start of a phase III study in relapsing remitting multiple sclerosis by Novartis;
-- further contingent payments of up to $534 million payable on the achievement of certain other development milestones.

Novartis Pharma will also pay royalties of up to 12% to GSK on any future net sales of ofatumumab in auto-immune indications.

David Redfern, Chief Strategy Officer at GSK, said: "We are pleased to have completed this transaction to divest the remaining rights in ofatumumab, crystallising significant additional value for GSK shareholders. We continue to focus on progressing our pipeline in core therapy areas including HIV, oncology, vaccines, cardiovascular, immuno-inflammation and respiratory diseases. We believe GSK's pipeline has significant potential to drive long-term performance for the Group and will be profiling it further at our R&D event in November."

This agreement with Novartis Pharma is subject to the expiry of any waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions. The transaction is expected to complete by the end of 2015. As this transaction relates to the divestment of assets in development, payments made to GSK as part of the transaction will be recorded as core turnover. Any milestone payments received by the Group in 2015 will be incremental to the company's current guidance for the year for core EPS to decline at a high teen percentage rate (CER).

Novartis Pharma is deemed, under Listing Rule 11.1.4R, to be a related party of GSK as a result of holdings of the Novartis group in GlaxoSmithKline Consumer Healthcare Holdings Limited. The divestment is a smaller related party transaction under Listing Rule 11.1.10R (1) and has been agreed following a confirmation from GSK's sponsor that the terms of the sale are fair and reasonable as far as GSK's shareholders are concerned.

[anhar] 20/8/2015 13:13

How many stocks do you hold Anhar?...

I hold 30 shares at present, in 19 sectors.

[greenpastures2] 20/8/2015 09:03

Cash is an option if there is a good chance you can buy things cheaper in the future and I suspect we will be able to. My SIPP is now all in cash since I sold on Monday. Like you Dr Biotech I am about 50% cash in total.

[dr biotech] 19/8/2015 14:28

How many stocks do you hold Anhar?

I have about 50% of my liquid assets in cash. It seems the market is pointing down and how far it will go is anyones guess. Some of the big resources groups have really been hit - but whether that makes them a buy or not is hard to tell. People will always need medicines so whilst GSK is not immune to downturn hopefully it will be less bad than others.

Not really sure what to do longer term. Cash is not really a great option.

[greenpastures2] 19/8/2015 13:56

Thanks for your reply anhar. Once I retired I too have focused mostly on dividend yielding stocks having made most of my money in investment trusts investing in Russia and emerging markets [lus some tech stocks such as AOL and Qualcomm.

However, we are coming into a period where complacency could well be dangerous. I am worried about the situation in China and the implications that it could have on the rest of the world's economy. I sold the two European income trusts I held in my SIPP yesterday.

[anhar] 19/8/2015 09:38

I think the virtue of your approach regards buying is that it will stop you purchasing at times when sentiment is high...

Yes, high yielders will usually be shares that are not market favourites.


...However, I find it hard to believe that if you have a wide portfolio of high yielders that you have managed to avoid most of the companies that have cut dividends such as Tesco, Sainsbury, Aviva, the banks.

Hats off to you if you have but to have done so other than by luck would have meant having quite a deep knowledge of the companies and the markets they operate in.

You are correct in that I have owned some cutters over the years. I don't think I've ever said I am able to avoid them so I'm not sure why you say that. Wish I could avoid buying shares that much later make cuts, but I can't. It's just one of the risks I am prepared to take in return for the benefits of my approach.

Because I have a widely diversified port, over time the income from those shares that don't cut more than makes up for those that do. That is precisely why it is so diversified, to minimise the risk to total income of cuts from particular sectors.

In some years when there is a lot of div cutting in recessions, then the port income does fall. The annual pattern is also distorted by other factors like special divs which can boost the income just for one year. In fact GSK is going to do exactly that for 2015 with a 20p special so there will probably be a fall in divs for 2016 from GSK against 2015.

For these and other reasons my strategy is never going to show a smooth progression of income increase every year but the long term trend is clearly upward and that's just because the long term trend of divs generally is upward.