 5 shares for 2025
Quality and value
Pharmaceutical company GSK is becoming a dependable name for raising and meeting guidance. That may not continue forever, but even after coming up against some headwinds in the vaccines franchise, it’s on track to meet its twice upgraded guidance for 2024.
The financial progress is underpinned by excellence in research and development that’s seen 11 positive late stage clinical updates from recent results, and is expected to yield five major product approvals next year. Beyond vaccines, the group also has a strong presence in HIV treatments, which make up about 20% of total revenues. Its newer treatments are a key part of GSK's future, as generic competitors eat away at pricing power for some of the group's legacy treatments, and sales growth in the category remains healthy. The smaller oncology division is growing very rapidly, with promising growth drivers in both existing treatments and the development pipeline.
However, the pharmaceutical industry comes with high exposure to changes in the political landscape as well as the inherent risk of failed clinical trials so investors should be prepared for disappointments.
More recently, the valuation’s been held back by litigation relating to the heartburn drug Zantac. We believe developments on that front have materially reduced a key risk. But that’s not been enough to offset investor concerns around the US performance of two key products, Arexvy and Shingrix.
Given the impact on next year’s forecasts have been fairly limited, the continued pressure on the valuation looks to be overdone, which could offer an attractive entry point to an impressive business. And on the plus side, valuation weakness has helped push the forward prospective dividend yield to 4.9%. As ever, no returns are guaranteed. |
Look at the way share price goes down a total disgrace . |
I doubt it means anything but anyone else notice the last year's chart looks like a massive head and shoulders? :0 |
1300 to nearly 1400 pence did not take too long here on the upward leg, hopefully we are back on the every 2 year cycle of rising towards 1800 again now.. :o) |
GSK plc announced that the FDA has accepted its regulatory filing, seeking the approval of a new indication for Nucala (mepolizumab) in chronic obstructive pulmonary disease (COPD) treatment for review. A decision from the regulatory body is expected on May 7, 2025. |
Blenrep could be worth more than £3billion in annual sales for GSK if it comes to market. |
 LONDON - GSK plc announced significant overall survival (OS) results from the DREAMM-7 trial, which showed a 42% reduction in the risk of death for patients treated with Blenrep (belantamab mafodotin) in combination with bortezomib and dexamethasone (BVd), compared to a daratumumab-based regimen. The data, presented at the 66th American Society of Hematology (ASH) Annual Meeting, could potentially reshape the standard of care for multiple myeloma patients at or after first relapse.
The trial, which included 494 participants, revealed that the three-year OS rate was 74% in the BVd arm versus 60% in the daratumumab combination arm, with the survival benefit observed as early as four months. Although the median overall survival was not reached in either study arm, projections suggest a median OS of 84 months for BVd, compared to 51 months for the daratumumab combination.
In addition to the OS benefit, the Blenrep combination demonstrated a greater than 2.5-fold improvement in minimal residual disease (MRD) negativity rate, indicating no detectable cancer cells, compared to the daratumumab combination. The results also included improvements in other key secondary efficacy endpoints, such as duration of response (DOR) and progression-free survival 2 (PFS 2), suggesting deeper and more durable responses with BVd.
The safety profile of the Blenrep combination was consistent with previous analyses, with manageable and resolvable eye-related side effects, leading to a low treatment discontinuation rate. The trial's findings build upon earlier results from the DREAMM-7 and DREAMM-8 trials, which demonstrated improvements in progression-free survival.
Regulatory reviews of Blenrep combinations based on the DREAMM-7 and DREAMM-8 trials are underway in several major markets, including the US, European Union, Japan, China, United Kingdom (TADAWUL:4280), Canada, and Switzerland. The DREAMM clinical development program continues to assess the potential of belantamab mafodotin in various treatment combinations and settings. |
4% up in the US |
Think they have an agenda? |
Was there any point? :/ |
BofA Global Research cuts price objective to 1415p from 1425p |
LONDON - GSK plc (LSE/NYSE: GSK) announced Monday that the National Medical (TASE:PMCN) Products Administration (NMPA) of China has accepted the new drug application for Blenrep (belantamab mafodotin) in combination with bortezomib and dexamethasone for priority review. This treatment is aimed at patients with relapsed or refractory multiple myeloma, a condition which has seen rising cases in China.
The submission is supported by phase III DREAMM-7 trial results, which demonstrated a statistically significant improvement in overall survival for patients treated with the Blenrep combination compared to the current standard of care. The trial met its primary endpoint by showing a clinically meaningful improvement in progression-free survival (PFS).
This marks the seventh major regulatory filing acceptance in 2024 for belantamab mafodotin combinations based on the DREAMM-7 and DREAMM-8 trials, with previous acceptances for review in the US, European Union, Japan, United Kingdom (TADAWUL:4280), Canada, and Switzerland.
Multiple myeloma is the third most common blood cancer globally, and while treatable, is not considered curable. In China, the disease has doubled in incidence and mortality has increased over the last thirty years. The Blenrep combination could potentially offer a new treatment option for patients at first relapse, addressing a significant unmet medical need. |
Muna Therapeutics has entered a research alliance with GSK to expedite Alzheimer's disease treatments by discovering and validating new drug targets.
The partnership is set to leverage Muna's MiND-MAP platform's spatial transcriptomics to analyse brain samples from groups including Alzheimer's patients and cognitively resilient individuals.
It also utilises Muna's expertise in mapping the response of the brain to pathological protein aggregates.
Muna will receive €33.5m ($35.2m) in an upfront payment from GSK, which also includes potential milestone payments of €140m ($147.1m) per target, plus tiered royalties on the net sales of any resulting products.
By examining postmortem human brain samples, the companies will identify potential new drug targets, which will be validated using Muna's humanised cell and animal models suite with additional insights provided by patient tissue and biofluid samples.
Muna will be responsible for leading the target identification and validation, while GSK will take the reins on drug development, overseeing preclinical activities, clinical development, manufacturing and commercialisation. |
HL has included GSK as one of 5 shares to watch in 2025
Pharmaceutical company GSK is becoming a dependable name for raising and meeting guidance. That may not continue forever, but even after coming up against some headwinds in the vaccines franchise, it’s on track to meet its twice upgraded guidance for 2024.
The financial progress is underpinned by excellence in research and development that’s seen 11 positive late stage clinical updates from recent results, and is expected to yield five major product approvals next year. Beyond vaccines, the group also has a strong presence in HIV treatments, which make up about 20% of total revenues. Its newer treatments are a key part of GSK's future, as generic competitors eat away at pricing power for some of the group's legacy treatments, and sales growth in the category remains healthy. The smaller oncology division is growing very rapidly, with promising growth drivers in both existing treatments and the development pipeline.
However, the pharmaceutical industry comes with high exposure to changes in the political landscape as well as the inherent risk of failed clinical trials so investors should be prepared for disappointments.
More recently, the valuation’s been held back by litigation relating to the heartburn drug Zantac. We believe developments on that front have materially reduced a key risk. But that’s not been enough to offset investor concerns around the US performance of two key products, Arexvy and Shingrix.
Given the impact on next year’s forecasts have been fairly limited, the continued pressure on the valuation looks to be overdone, which could offer an attractive entry point to an impressive business. And on the plus side, valuation weakness has helped push the forward prospective dividend yield to 4.9%. As ever, no returns are guaranteed. |
I never automatically reinvest divis into the issuing share because it may not be the optimum choice in a diversified income port like mine. When I do have surplus divi cash to reinvest, all the shares in the port have to compete for it or perhaps a new holding. GSK has not been the most attractive choice for some years... |
I continue to accept the dividends and (with them) buy more GSK. It compounds nicely ....;0) |
I'm sure many LTH's share your frustrations. What's peculiar now though is that GSK is not in bad shape with many approvals predicted for the next couple of years. However, the sentiment is very poor right now and this has been a feature for most of GSKs (old and new) existence. It's partly been of their own making as some good news has almost invariably been followed by bad many times and this has stalled momentum. |
If I were investing for capital growth then GSK which I've held for a very long time would be an utter crock. In fact the only reason my combined GSK/HLN holding is showing a small profit over my original cost of old GSK all those years ago is because HLN has boomed, up 51% on its allocated cost in the demerger, whilst new GSK is making a loss.
But I'm not a growth player, I'm an income investor and usually hold long term so don't trade much. However the income situation is not too attractive either because the total income from GSK+HLN is well below the 80p old GSK was paying pre-demerger. And even that 80p had been frozen for several years.
Not bad enough to dump but disappointing after decades. Still, that's the point of a diversified port where inevitably some sectors will do better than others but the essential trade-off is that risks are spread. |
1500-1600 would be pleasing. |
1800 by Christmas seems way too high in my opinion but let's hope so.
1500 would be ok with me and I agree it's been way oversold. Chasing it down is something I have been doing for a couple of months and 1410 as it stands gets me into profit.
I will continue to add on any dips as it feels like it's finally waking up again.
Good luck all 👍🏻 |
IF the pattern repeats the share seems to wobble along since 2012 between 1300-1800, so we could be due an upturn in the trend now.. :o) |
Yes it is on the up after the crazy overselling |
Momentum changing here now.. |
I think it will climb back to £18 by Christmas |
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