GSK (GSK) stock has risen 18.5% so far this year compared with an increase of 27.1% for the industry. The stock has also been consistently trading above its 50-day and 200-day moving averages since mid-August. Zacks Investment Research Image Source: GSK Stock Movement in 2024 So Far GSK boasts a diversified base and presence in different geographical areas. The spin-off of the Consumer unit in 2022 has allowed it to focus on drug development. In July 2022, GSK de-merged its Consumer Healthcare segment into ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. It also includes access to the Zacks Style Scores ...

Core Insights - GSK's stock price has shown volatility, with a notable rise of over 16% following Q1 2024 results, but faced a decline of almost 9% due to Zantac-related litigation concerns [1][2] - The company's H1 2024 results exceeded expectations, indicating strong fundamentals despite ongoing legal risks [1][2] Financial Performance - Healthy sales growth was reported, with turnover excluding COVID-19 solutions increasing by 13% year-on-year (YoY) in both H1 2024 and Q2 2024 at constant exchange rates (CER), consistent with the 14% growth in 2023 [2][4] - Core earnings per share (EPS) grew by 20% YoY at CER, although growth softened to 13% YoY in Q2 2024, still surpassing initial projections of 6-9% [4][5] - GSK has upgraded its full-year outlook, now expecting turnover growth of 8% and core EPS growth of 11% [5][6] Future Outlook - Despite positive H1 2024 results, a slowdown is anticipated in H2 2024, with turnover expected to contract by 5% YoY and core EPS declining by 9% YoY [6][7] - The company attributes this expected slowdown to the annualization of product launches and stocking impacts, particularly in Vaccines and Oncology [7][8] - GSK's Specialty Medicines segment remains strong, contributing 37% of revenues in H1 2024 with a 20% YoY increase [10][11] Stock Metrics - The forward non-GAAP price-to-earnings (P/E) ratio is projected at 8.9x, indicating significant potential upside compared to the five-year average P/E of approximately 13x [12] - GSK has increased its dividend payout by 3.4% for 2024, resulting in a forward dividend yield of 3.9%, which is favorable compared to the healthcare sector median yield of 1.4% [13][14] Investment Considerations - GSK's strong H1 2024 performance and upgraded outlook make it an attractive investment, although risks related to expected weak performance in H2 2024 and ongoing Zantac litigation may temper enthusiasm [15][16]

Financial Data and Key Metrics - Sales grew 13% to £7.9 billion in Q2 2024, with core operating profit up 21% to £2.5 billion and core earnings per share rising 17% to 43.4p, all excluding COVID solutions [3] - The company upgraded its full-year guidance, expecting sales growth of 7% to 9% and core operating profit growth of 11% to 13% for 2024 [6][29] - For 2026, the company expects more than 7% sales growth and more than 11% core operating profit growth, with sales projected to exceed £38 billion by 2031 [7] Business Line Performance - Vaccines sales grew 3% in Q2, excluding COVID solutions, with Shingrix delivering £832 million despite a 4% decline in the quarter [16] - Specialty Medicines sales increased by 22%, driven by strong performance in oncology and HIV treatments, with Nucala up 17% and Benlysta up 20% [18] - General Medicines grew by 12% in Q2, with Trelegy sales increasing 41% to £842 million, driven by channel and segment mix adjustments [20] Market Performance - In the U.S., sales grew 17%, with Shingrix sales declining 36% due to channel inventory reductions and changes in retail vaccine prioritization [16] - Outside the U.S., Shingrix sales grew significantly, representing 64% of Q2 revenue, with strong performance in Australia, Europe, and China [16] - Arexvy, the RSV vaccine, has vaccinated nearly 8 million people since launch, maintaining around 2/3 of the retail vaccination share [17] Company Strategy and Industry Competition - The company continues to invest in its pipeline, with 70 assets in clinical development, focusing on vaccines, oncology, and respiratory treatments [8][9] - GSK is advancing its long-acting HIV medicines, with plans to deliver the first ultra-long-acting 4-monthly treatment regimen by 2027 [23] - The company is also progressing in oncology, with Blenrep showing potential to become the new standard of care for multiple myeloma [13] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the medium-term outlook for the vaccines portfolio, despite short-term impacts, and expects growth to come from outside the U.S. [33][40] - The company is focused on delivering differentiated health impact and attractive returns for shareholders, with a strong pipeline and strategic investments in key therapeutic areas [32] - Management highlighted the importance of cost discipline and operational efficiency, which have driven margin improvements and strong cash flow generation [26][27] Other Important Information - The company launched faenoquine in Thailand and Brazil, the first single-dose radical dual medicine to prevent malaria relapse [5] - GSK is conducting a Phase III trial for a low-carbon version of its metered-dose inhaler Ventolin, which could reduce emissions by around 90% [5] - The company is also progressing in ESG initiatives, including partnerships to fight antimicrobial resistance and reduce carbon emissions [5] Q&A Session Summary Question: Vaccine dynamics in China and U.S. Shingrix growth [33] - In China, Shingrix has expanded to 19,000 points of vaccination and is on track for 27,000 by year-end, with strong demand expected in key cities [34][35] - In the U.S., Shingrix sales declined due to channel inventory reductions and CMS rule changes, but growth is expected in the second half of 2024 [36][37] Question: Arexvy contracting and revaccination [45][54] - The company is confident in Arexvy's long-term potential, with peak sales expected to exceed £3 billion, driven by global rollout and strong data [17][49] - Revaccination data for Arexvy will be presented later this year, with the company awaiting full data to determine the need for boosters [57] Question: Zantac litigation and potential settlement [70] - The company reiterated its commitment to defending against Zantac claims, with no change to its growth agenda or investment plans [70] Question: Competition in China and Arexvy's potential [72] - Local competition in China is limited, with Shingrix maintaining a strong position due to its efficacy and target market [74] - The company is exploring opportunities to expand its collaboration with Japan rand to include Arexvy [74] Question: HIV guidance and long-acting therapies [78] - The company expects double-digit growth in HIV for the third consecutive year, with long-acting therapies expected to drive future growth [79] Question: Mechanism for lower dementia incidence with Shingrix [82] - The potential mechanism for reduced dementia risk with Shingrix is still under investigation, with vascular and viral reactivation hypotheses being explored [82]

Key Takeaways GSK lifted its sales and earnings projections for the year, after a strong performance by its HIV and cancer drugs drove second-quarter sales higher. The British pharmaceutical firm said sales rose 13% year-over-year to 7.88 billion pounds ($10.12 billion), beating analysts' estimates. GSK said it expects sales growth between 7% and 9% this year, up from its prior forecast, but cut its vaccine sales outlook. GSK (GSK) lifted its sales and earnings projections for the year, after a strong perfo ...

This quarterly report represents an earnings surprise of 9%. A quarter ago, it was expected that this drug developer would post earnings of $0.94 per share when it actually produced earnings of $1.09, delivering a surprise of 15.96%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. There are no easy answers to this key question, but one reliable measure that c ...

Collaboration brings together GSK disease area expertise and development capability with Flagship portfolio of 40+ bioplatform companies Initial phase to identify and accelerate promising scientific concepts for further research starting in respiratory and immunology GSK and Flagship to jointly fund up to $150 million upfront GSK and Flagship will initially fund up to $150 million upfront to support an exploration phase to identify the most promising concepts for further research and development with Flagsh ...

GSK, a multinational pharma company, scans as a bargain. Prior to Walmsley's tenure, GSK grappled with significant hurdles, including the patent expiration of its respiratory blockbuster Advair, a weak oncology portfolio, and a limited pipeline beyond respiratory medicines. During her seven-year tenure, GSK has emerged as a formidable player in infectious diseases, solidified its leadership in respiratory ailments, and made promising strides in hematology/oncology through strategic acquisitions. GSK's stock ...

Industry Overview - Pharmaceutical stocks are considered resilient investments due to the inelastic demand for medications and healthcare services, which remain stable regardless of economic conditions [1] - The U.S. economy is showing signs of slowing, with GDP growth at 1.4% year-over-year in Q1 2024, making it a favorable time to invest in undervalued pharma stocks [11] Novo Nordisk A/S (NVO) - Novo Nordisk is a Danish pharmaceutical company focused on diabetes and obesity care, as well as rare diseases, with significant media attention on its weight-loss drugs, Ozempic and Wegovy [3] - The company has generated billions in sales from its new drugs, with Goldman Sachs predicting the weight-loss drug market will reach $100 billion by 2030 [12] - NVO shares have increased by 80.4% over the past year, trading at 39.6x forward earnings, indicating strong potential for further growth [12] Novartis (NVS) - Novartis is a Swiss pharmaceutical company that develops drugs in therapeutic areas such as cardiovascular, immunology, and oncology, with Entresto being one of its most lucrative products [5][16] - In 2023, Novartis generated over $6 billion from Entresto, a 30% year-over-year increase, and $4.9 billion from Cosentyx, which treats moderate to severe hidradenitis suppurativa [16] - NVS shares trade at 14.2x forward earnings, making them relatively cheaper compared to other innovative companies in the U.S. stock market [17] GSK (GSK) - GSK is a British pharmaceutical company specializing in vaccines and general medicines, with a focus on respiratory, oncology, and infectious diseases [8] - Under CEO Emma Walmsley's leadership since 2017, GSK has shifted its strategy towards vaccines and cancer, moving away from its previous focus on HIV [18] - GSK generated $9.1 billion in Q1 revenue, driven by respiratory vaccines and specialty HIV products, and plans to launch 12 new pharma products by 2025 [18]

GSK plc (GSK) boasts a diversified base and presence in different geographical areas. The spin-off of the Consumer unit in 2022 has allowed it to focus on drug development. In July 2022, GSK de-merged its Consumer Healthcare segment into a standalone company. The independent Consumer Healthcare company was named Haleon (HLN) . Haleon was a consumer health joint venture, an over-the-counter medicines business, jointly created by GSK and partner Pfizer (PFE) in 2019. GSK has been regularly selling its stake i ...