Gsk Share Discussion Threads

[montyhedge] 05/12/2018 16:05

GSK below price it was 25 years ago.So not a growth stock.

[zho] 05/12/2018 16:03

>>That’s a bitter pill to swallow for investors as the deal has failed to prevent the destroyal of roughly £30bn of shareholder wealth.

Destroyal? What's wrong with destruction?

[tradermichael] 05/12/2018 15:49

In December 2000, two of the UK's largest pharmaceutical companies, Glaxo Wellcome and SmithKline Beecham came together to form global giant GlaxoSmithKline.

At that time, GSK's share price was close to £21, valuing the firm at close to £110bn and putting it in the top three of the FTSE 100.
Fast forward almost 18 years and GSK's share price is around £14.75, or about a third lower than at the time of the merger.

That’s a bitter pill to swallow for investors as the deal has failed to prevent the destroyal of roughly £30bn of shareholder wealth.

According to collated research and a recent Harvard Business Review report, the failure rate for mergers and acquisitions (M&A) sits between 70 percent and 90 percent.15 Mar 2017

[tradermichael] 05/12/2018 15:17

At least the Aug-Dec inverse head and shoulders played out ….. ;0)

[jadeticl3] 05/12/2018 14:02

Philanderer, did you note that of the 17 broker ratings on different companies 17 were downgrades?

[poikka] 05/12/2018 12:26

I'm with Alphorn (heart-stopping moment) on this in that "Not qualified to comment on the science".

Presumably, E is not mad and has some very good scientific advice. On that basis, I'm not selling.

[rikky72] 05/12/2018 12:23

Gregmorg - agree, this has to be given time but there are so many short termists around; this is not a short term investment though. Hal has pedigree in oncology and so I trust that he has seen something that makes him believe. Would like to see a recovery to £16 within 6 months though but maybe that is wishful thinking. We will see.

[gregmorg] 05/12/2018 12:11

Mm, Reminds me of the turn around at AZN. Everyone panned the early moves. The bears were jumping up and down at £26 suggesting all sorts of Armageddon Such was the noise that it almost unnerved me and I only picked up 30% of my normal unit size. However it worked out wonderfully but in time. My guess is it will be a similar scenario but one just has to be patient. For the short term merchants that , of course, would never do. Still its what makes a market.

[watfordhornet] 05/12/2018 10:40

Why doesn't Emma come out and explain the rationale for spending so much on a loss making company. If i5 the pipeline come out and say it. Looks to me they are paying twice as much as should. Why is amount not tied to future success. Looks like a huge gamble where the only ones winning are the takeover candidates

[ny boy] 05/12/2018 10:18

GSK expects the acquisition of TESARO and associated R&D and commercial investments will impact Adjusted EPS for the first two years by mid to high single digit percentages, reducing thereafter with the acquisition expected to start to be accretive to Adjusted EPS by 2022.

Presumably the share price reset is underway to an attractive entry level

[ny boy] 05/12/2018 10:11

1430p support

Dropped out of the floor of up trend channel @ 1472.85

[philanderer] 05/12/2018 10:11

Downgraded by Barclays today

[ianood] 05/12/2018 09:43

But has surrounded herself with one of the industry best in this field from AZN - Dr Hal Barron

[alphorn] 05/12/2018 09:41

Not qualified to comment on the science but this acquisition seems more like the purchase of a mode of action rather than a specific product. Can anybody comment with knowledge?

[handykart] 05/12/2018 09:20

She is from consumer business background, rather than Pharma.

[montyhedge] 05/12/2018 09:13

I in phase 3 only 1 is she mad.

[montyhedge] 05/12/2018 09:12

Had to laugh she spent the money and more before she received the cheque, sounds familiar.

[tradermichael] 05/12/2018 09:09

GSK will own Tesaro's pipeline of immuno-oncology candidates:

Several candidates in Discovery
6 candidates in Phase I
5 candidates in Phase II
1 candidate in Phase III

Plus a potential blockbuster just approved earlier this year.

[tim 3] 04/12/2018 18:46

Problem is the city is so short sited these days but the nature of gsk's business involves taking risks.

[ygor705] 04/12/2018 18:25

Have ridden my luck on this one all year and it has paid. Didn't like yesterday's change in wind direction so am now out for the time being.

[alphorn] 04/12/2018 15:16

Fangorn - yes, next year may be different.

[fangorn2] 04/12/2018 15:14

@Alphorn,

Am torn. GSK looks reasonably good value if Divi is maintained but this acquisition looks expensive.

Was tempted sub 1500p yesterday but less inclined today.

Am assuming there will be a santa rally across the board this year...

And first two quarters of next year pose several major issues market wise.

[alphorn] 04/12/2018 15:06

Fangorn - probably valid.

On the plus side it looks as though Niraparib (Zejula) has moved quickly to approval so probably has long IP protection for further development.

[fangorn2] 04/12/2018 14:58

The only people who know the true value of this deal are GSk management

Disagree.

I'd say it is Tesaro management - the people selling out to GSK.

Glaxo's $5 Billion Takeover of Tesaro Seen as Too Expensive

[warranty] 04/12/2018 14:34

The only people who know the true value of this deal are GSk management. It may turn out to be a giant white elephant or on the other hand an inspired and transformative addition. We have some of the most knowledgable people on the planet making this decision and I'd rather put my faith in their opinion than people on here or hacks writing blogs. As long as they maintain the dividend I'm happy to back them to build gains over time.