Gsk Share Discussion Threads

[rikky72] 11/10/2024 15:48

One thing. Name me one realised benefit of Brexit? I'll be waiting..

[supermarky] 11/10/2024 15:45

Nothing to do with the ineptitude of the governments then? Nothing to do with the plague? I bet you are a remainer and you are seeing what you want to see.

[pander45] 11/10/2024 13:49

I'd wait if I were you. I see 1300s

[dope007] 11/10/2024 12:56

I'll be adding one final tranche when my last few dividends come in so hopefully Reeves keeps screwing our markets over for a couple more weeks yet

[spoole5] 11/10/2024 12:27

No more zantac excuses. Let's focus on that pipeline.......

[pander45] 11/10/2024 12:26

Absolutely spot on.

[abdullla] 11/10/2024 12:21

Soon yesterday 's opening gain of 70p will fizzle out into smoke, ìt seems the 2.2 billion dollars was of no use just waste of time

[dope007] 11/10/2024 11:47

Blame Reeves and Labour for the daily yanking of cash from UK stocks. Some massive bargains out there including Glaxo

[spoole5] 11/10/2024 11:25

Unfortunately zantac isn't the only issue here and the market knows it.

[pander45] 11/10/2024 11:04

Big seller still in the house.

[tuftymatt] 11/10/2024 10:17

Yeah back in too as at sub 1500 this has to be a great buy given time.

Good luck all 👍🏻

[pj84] 11/10/2024 10:17

Hargreaves: Buy GSK before Zantac discount goes

[craigso] 11/10/2024 09:50

Goes to show that sentiment is hard to change.

GSK was trading in the £17-18 range happily enough, then everybody started to worry about Zantac so it dropped to £14-15.

Fix the Zantac problem and we can't even hold on to £15???

GSK has been one of my core "buy, forget, reinvest the dividends" stocks for years but in hindsight AZN was clearly the UK pharma horse to back.

[panache1] 11/10/2024 08:41

Hate to go against the market but just couldn't resist at this level - I'm in

[geckotheglorious] 11/10/2024 08:25

On a positive side


Hargreaves: Buy GSK before Zantac discount goes
GSK (GSK) is drawing a line under its Zantac litigation with a bumper payout which ‘substantially derisks’ the investment case, says Hargreaves Lansdown.

Shares in the Citywire Elite Companies AAA-rated pharmaceutical giant climbed 3.2% to £15.05 yesterday after it confirmed it had paid $2.2bn to settle 80,000 cases in US courts over claims that a version of its heartburn treatment Zantac caused cancer. The payment covers 93% of claims but GSK accepts no wrongdoing. It will also pay $70m in a separate but related action.

Analyst Derren Nathan said the outcome was ‘significantly better’ than expected, with some estimates as high as $45bn.

‘Looking ahead, GSK’s operational performance should be the key driver of investment,’ he said. ‘Execution has been impressive of late, with two upgrades already in the bag this year.’

It has faced headwinds in key vaccine programmes but overall, ‘recent clinical progress elsewhere in the portfolio has also seen a bigger share of successes than failures’.

‘The upcoming Zantac settlements substantially derisk the investment case for GSK shares which are trading at a hefty discount to the sector, meaning this could be an opportune time to consider increasing exposure to the stock,’ he said.

[geckotheglorious] 10/10/2024 16:41

GSK update eases investors’ fears as focus turns to vaccines

FTSE 100 pharmaceutical giant resolves legal case over Zantac drug as concern shifts to uptake of firm's key vaccines.

Relief for GSK investors after the drugs giant moved to end two years of Zantac litigation uncertainty was today balanced by near-term worries over the uptake of key vaccines.

GSK shares reached early afternoon 5% or 70p higher at 1528p, below the initial 10% uptick predicted by Jefferies analysts following last night’s disclosure.

Jefferies said the settlement of 93% of Zantac liability cases for $2.2 billion is equivalent to about 40p a share and compared with its own $2 billion-$3.5 billion estimate.

GSK, which admitted no liability, intends to fund the costs from existing financial resources and said there will be no impact on its “growth agenda or investment plans”. Its dividend policy for a payout equivalent to 40%-60% of earnings is unchanged, it told City analysts.

Having noted higher previous product liability settlements in the pharma industry, UBS said the value of the GSK agreement should be a positive surprise to investors. It said: “We see the settlement as a clear positive, removing a major overhang and uncertainty for investors.”

The bank pointed out that the remaining 7% of cases were outstanding because the company had chosen to approach the 10 largest plaintiff firms as a priority. The process is set to conclude by the end of the first half of 2025.

Like counterparts at Jefferies, UBS warned that other factors may continue to hang over GSK’s valuation despite the removal of Zantac uncertainty.

UBS said these near-term challenges included weak uptake for the respiratory syncytial virus (RSV) product Arexvy and increasing competition in long-acting HIV prevention.

It also flagged slower-than-expected uptake of shingles vaccine Shingrix in China.

Launched in the third quarter of 2023 and available in major retail pharmacies, Arexvy generated £244 million in sales in the first six months of the year.

It had two-thirds of the retail vaccination share in the second quarter, but demand decreased overall in line with anticipated respiratory virus seasonality patterns.

UBS has a Neutral stance and price target of 1,580p, while Jefferies had a price target of 2,000p prior to yesterday’s legal developments.

The US bank said: “Concerns linger over sales expectations for RSV vaccine Arexvy in both the second half and 2025 given recent slow US RSV vaccine uptake and data supporting an every three year re-vaccination schedule.

“In addition, investors continue to debate the sustainability of the Shingrix franchise, given US sales declines and potential concerns around uptake in China.”

GSK is due to post third-quarter results on 30 October, having upgraded full-year guidance in July as new launches in oncology boosted sales growth in its Specialty Medicines division.

Turnover is now expected to grow by between 7% and 9% and core earnings per share in the range of 10% and 12%. It recently paid a 15p a share quarterly dividend as part of plans to distribute 60p a share across the year.

Shore Capital points out that shares trade on a forward looking multiple of 8.1 times, a significant discount to peers and below the 12 times that GSK has historically commanded. It believes shares deserve to be at 2,200p.

Analyst Sean Conroy expects that the Zantac developments will serve as a clearing event for GSK and be broadly well received.

He added: “This now provides an excellent opportunity for the shares to properly re-rate and allow people to refocus their attention on the improving growth outlook GSK has been delivering since the demerger of Haleon"

[supermarky] 10/10/2024 16:10

I have just now topped up.Buy and hold.Good news and glad I waited until this afternoon on the dip. Good to see major Good news with gsk.Hopefully this will set them free to move north

[tradermichael] 10/10/2024 16:02

Senior executives at GlaxoSmithKline, including the CEO and CFO, have acquired ordinary shares as part of the company's Share Reward Plan. The transactions, which took place on the London Stock Exchange, involved acquisitions at a price of £14.5185 per share.

[pander45] 10/10/2024 15:23

Exited have we trader?

[pander45] 10/10/2024 15:15

Dive dive dive

[citytilidie] 10/10/2024 15:09

Not much chance of that. £16-£17 tops if the market behaves itself. I’d be quite happy with that.

[rikky72] 10/10/2024 13:34

Always quick to dive and slow to go up, sane for virtually all shares. Barring any more unforeseen catastrophes (never a given with GSK) we should see £19-20 within 6 months.

[pander45] 10/10/2024 13:32

Some peoples cup is half full even with a hole in the bottom. Odd.

[tradermichael] 10/10/2024 13:28

abdulla - it seems that your cup is always half empty when for others, theirs is half full ;o)