Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

GSK sees lower profit this year, split plans on track

Published 02/03/2021, 07:18 AM
Updated 02/03/2021, 08:15 AM
© Reuters. FILE PHOTO: Company logo of pharmaceutical company GlaxoSmithKline is seen at their Stevenage facility

(Reuters) -Britain's GSK forecast a dip in earnings this year as it grapples with COVID-19 disruptions and invests in its pipeline of new drugs, and said its plans to split into two businesses were on track.

The world's biggest vaccine maker by sales said on Wednesday it expected adjusted earnings to fall by a mid- to high-single digit percentage at constant exchange rates.

Turnover for the fourth-quarter of 2020 fell 2% to 8.74 billion pounds ($11.9 billion) and adjusted earnings came in at 23.3 pence per share, both slightly higher than analysts' average forecast.

While the COVID-19 pandemic has boosted demand for GSK's over-the-counter painkillers, it has disrupted other parts of its business as patients have made fewer trips to doctors.

Earlier on Wednesday, GSK said it was teaming up with German biotech firm CureVac to develop a COVID-19 vaccine to target several variants of the virus with one shot.

Rather than developing its own COVID-19 shot, GSK has so far focused on supplying its vaccine booster, or adjuvant, to other drugmakers. But it has had two big setbacks, as a project with Sanofi (NASDAQ:SNY) was delayed, while China's Clover ended its deal with GSK on Monday.

Meanwhile, companies using new technologies that don't require adjuvants, including Pfizer/BioNTech and Moderna (NASDAQ:MRNA), are already rolling out COVID-19 vaccines.

© Reuters. FILE PHOTO: Company logo of pharmaceutical company GlaxoSmithKline is seen at their Stevenage facility

GSK last year launched a two-year programme to split in two after the merger of its over-the-counter products business into a venture with Pfizer (NYSE:PFE) that created a market leader with brands from Sensodyne toothpaste to Panadol painkillers. That will be split from its drug making business.

($1 = 0.7335 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.