01 February 2023
If you are covering GlaxoSmithKline’s latest financial results, please find below a comment from Sheena Berry, equity research analyst at Quilter Cheviot:
“GSK’s results are pretty solid and ahead of expectations, now delivering a few consecutive quarters of good performance. The main product in focus is Shingrix, a shingles vaccine, which delivered a quarter ahead of expectations. Some of the better performance was helped by older products such as respiratory product Advair, however this is less of a focus and not core to the investment thesis. GSK’s new drugs and development pipeline will be crucial for 2023, and for now guidance is as expected.
“Looking ahead to 2023 and beyond, we maintain that GSK needs to enhance its pipeline, especially with the Dolutegravir patent expiring in 2027 creating a headwind within its HIV franchise. 2023 is a relatively light year in terms of catalysts for the company, with focus on the group’s receiving regulatory approval for its RSV vaccine. Things such as the Zantac litigation case and the product potentially causing cancer also remain an overhang on the stock. The litigation continues in federal and state courts in the US with clues to how this wills be resolved later in February.
“All in all, solid results to finish 2022, but headwinds remain and there are better quality healthcare stocks available to investors.”
