Gsk Share Discussion Threads

[williamcooper104] 22/2/2021 15:12

Track record of PE v listed corporates is not a good one - it's amateurs v professionals (PE may not have the operational experience but they do know how to transact) plus the existing management of the business being sold incentivised to kill the acquisition price during dd

[spud] 22/2/2021 15:12

William, why would the share price tank if the split was cancelled???

Could very well rise!

spud

[williamcooper104] 22/2/2021 15:10

Correct - if you think the split is a bad idea then really no point in owning GSK If the split doesn't happen (which is of course a possibility) then you will be able to buy in cheaper than today's sp

[coxsmn] 22/2/2021 15:04

The cost of the split is £2.4bn.

It is expected to result in £500m a year in cost savings. Not sure if this savings is split between Phizer and GSK?
So payback time is ~5 years of cost savings.

£500M annual savings divide by ~5 billion shares = 10p per share.

If 100% of the annual savings is returned as a dividend then 10p per share equates to a maximum of 0.83% increase in yield at current share price

Doesn't seem like a huge increase or am i missing something?

[montyhedge] 22/2/2021 13:53

It's quite simple if you think the split bad and a reduced dividend you can't handle then don't own GSK.But if like me think best thing slice bread, growth with a growing dividends in the end.

[essentialinvestor] 22/2/2021 13:51

The quick list I posted were all examples of where subsidies became
separately listed PLC's.


If Pennon had listed Virdor, would guess Virdor alone would be valued at around
£4 bn by now. They arguably made a shocking decision to sell to private equity instead,
particularly without knowing what to do with the proceeds in advance.

[montyhedge] 22/2/2021 13:46

ICI spun off Zeneca then merged with Astra around 1500p now 7200p not to bad.GSK split, best thing ever. We will have shares in two FTSE 100 companies. If you think it's a bad thing don't own any GSK.

[abdullla] 22/2/2021 13:07

TM left Vodafone,he has the nasty taste what happened after Verizon wireless was sold for 130 Billion mega bucks and nobody got anything out of it,infact Vodafone nearly went bankrupt,similarly GSK by splitting is walking on the same path now,hope it is not a double whammy!

[supermarky] 22/2/2021 12:49

....and pork scratchings! :-)

[coxsmn] 22/2/2021 12:47

Shareholders get to own a stake in the consumer health business as well as R&D?

[williamcooper104] 22/2/2021 12:37

You need the consumer business to underwrite the failures of the pharma/R&D side If the R&D succeeds you don't need the consumer arm And the consumer arm is more valuable to shareholders who don't want the R&D risk - it's a classic conglomerate discount So there is an upside from de merging even if it's not cheap But of course bad management is more than capable of screwing it up

[waldron] 22/2/2021 12:32

Sanofi SA said Monday that it has begun a new clinical trial for the coronavirus vaccine it is developing with GlaxoSmithKline PLC after a previous study failed to elicit sufficient immune response to the virus in older adults.

The French pharmaceutical major said the new study, which is in phase 2, will assess whether a refined antigen formulation is able to achieve optimal immune response, including in older adults.

A previous phase 1-2 study had shown last December a lower immune response in that age group, likely due to an insufficient concentration of the antigen used in the shot, the company said.

If the results from phase 2 are positive, the companies plan to carry out a phase 3 trial in the second quarter of 2021, Sanofi said. In case of positive results, a regulatory submission would happen in the second half of 2021, making vaccines available in the fourth quarter of the year in case of approval.

Sanofi added that it has also started development work against new variants of the SARS-CoV-2 coronavirus.



Write to Cecilia Butini at [e-mail]



(END) Dow Jones Newswires

February 22, 2021 06:14 ET (11:14 GMT)

[waldron] 22/2/2021 12:31

Sanofi SA said Monday that it has begun a new clinical trial for the coronavirus vaccine it is developing with GlaxoSmithKline PLC after a previous study failed to elicit sufficient immune response to the virus in older adults.

The French pharmaceutical major said the new study, which is in phase 2, will assess whether a refined antigen formulation is able to achieve optimal immune response, including in older adults.

A previous phase 1-2 study had shown last December a lower immune response in that age group, likely due to an insufficient concentration of the antigen used in the shot, the company said.

If the results from phase 2 are positive, the companies plan to carry out a phase 3 trial in the second quarter of 2021, Sanofi said. In case of positive results, a regulatory submission would happen in the second half of 2021, making vaccines available in the fourth quarter of the year in case of approval.

Sanofi added that it has also started development work against new variants of the SARS-CoV-2 coronavirus.



Write to Cecilia Butini at [e-mail]



(END) Dow Jones Newswires

February 22, 2021 06:14 ET (11:14 GMT)

[coxsmn] 22/2/2021 12:30

Total cost to split the company is £3.1bn, what is the financial gain of doing the split?

[geckotheglorious] 22/2/2021 11:45

Spud
Post 24930
"Total costs to split the Company of £3.1b ffs????
You’ve got to ask yourself whether this is a good move!!!"

Utter value destruction. £3.1bn.
Unlike Monty I am thoroughly against splitting the business.

Logically you need the consumer arm, with the cashflows, to underwrite the R&D of the Pharmaceutical arm and pay dividends.

[geckotheglorious] 22/2/2021 11:39

Supermarky,
You missed out Garlic and Beetroot!!
Otherwise list spot on.

:)

[coxsmn] 22/2/2021 11:38

Monty,Please could you explain why you think its the best thing?

[montyhedge] 22/2/2021 11:19

Investors hate uncertainty the split worries some investors. I think it's the best thing since sliced bread.

[alphorn] 22/2/2021 11:13

If the share price move is because of entering a PII trial then it makes no sense. I expect another reason.

[montyhedge] 22/2/2021 11:10

Add the 23p on the price ex dividend the other day, not to bad.

[andyadvfn1] 22/2/2021 10:59

Looking at the share price performance over the current year Sanofi and GSK look quite similar.

[porsche1945] 22/2/2021 10:56

Should have vaccinated the workforce first, also the most mobile part of the population, as they have in Asia, wasting time on people already shielded and not very mobile has cost valuable time.

[nigelpm] 22/2/2021 10:51

Pretty exciting news.