GlaxoSmithKline plc (GSK): Recent Acquisitions, Accelerating Growth through GSK’s Oncology Sales

GSK plc delivered a strong result and managed an all-around beat in the last quarter. The company’s strategic choices in developing its portfolio and R&D pipeline have been paying off, with new products, particularly in vaccines and HIV, contributing significantly to the growth. Vaccines and Specialty Medicines account for 62% of sales, providing a solid foundation for profitable growth in the coming years. The recent approval of Arexvy, a transformative vaccine for people over 60, is expected to bring significant benefits. GSK’s focus on organic pipeline delivery and targeted business development, coupled with innovations in infectious diseases and HIV treatments, positions the company for future success. The company has upgraded its guidance for the year. With the current momentum, it aims to achieve profitable sales growth and maintain a strong market position well into the next decade. Furthermore, GSK to acquire BELLUS Health, strengthening the respiratory pipeline with camlipixant. We give the company a ‘Hold’ rating with a revised target price.