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GSK slips despite a healthy start to the year
Shares in GSK (LON:GSK) have fallen 1.7% reflecting the broader malaise in the market with the FTSE 100 now down around 50 points.
Derren Nathan, head of equity research at Hargreaves Lansdown said: “GSK’s got off to a healthy start to the year."
He noted that as anticipated sales of COVID-19 solutions dented the top line, but strong sales of higher margin products such as Shingrix for shingles, meningitis vaccines, and long-acting HIV medicines helped shored up profits.
He reckons full year guidance, which also excludes COVID-19 revenues, remains unchanged. If quarter one sales trends continue, then the 6 to 8% growth range set out for 2023 is "very beatable."
Nathan added the pipeline is progressing well and looking ahead "there’s 9 programs pending approval from the medical authorities before the end of this year."
He pointed out the recently proposed US$2bn acquisition of Bellus Health (TSX:BLU) adds to that pipeline, with a late stage candidate for adult patients with refractory chronic cough.
He said "GSK is a leaner beast following the demerger from Haleon," and he doesn't think "that’s reflected in the valuation which is below both the long-term average and its peer group."