GlaxoSmithKline’s (LON:GSK) chief executive Emma Walmsley is set to put oncology at the heart of the turnaround of the group’s core pharmaceuticals division, The Times has reported. The news comes ahead of the announcement of the pharmco’s second-quarter results on Wednesday.
GSK’s share price has climbed marginally into positive territory in London this morning, having inched 0.45 percent higher to 1,556.80p as of 08:53 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into negative territory and currently standing 0.59 percent lower at 7,633.53 points. The group’s shares have lost more than three percent of their value over the past year, as compared with about a 2.3-percent rise in the Footsie.
GSK to focus on oncology
The Times reported this morning that GSK is expected to outline plans in a strategy update this week to focus on developing blockbuster oncology treatments. The move will come even as the group largely exited the area via a multibillion-dollar asset swap with Swiss peer Novartis. The newspaper notes that the group’s chief executive Emma Walmsley will be joined at a presentation to the City on Wednesday by Hal Barron, the group’s new chief scientific officer and head of research and development, who has been reviewing the drugs pipeline for the past six months.
They will reportedly outline plans to revive the group’s pharmaceuticals unit, which remains GSK’s biggest business, having accounted for more than half of the company’s £30.2 billion annual sales.
Analysts on blue-chip group
Deutsche Bank, which sees GSK as a ‘hold,’ lifted its price target on the shares from 1,420p to 1,525p last week, while Credit Suisse, which is ‘neutral’ on the blue-chip pharmco, set a valuation of 1,450p on the stock. According to MarketBeat, the FTSE 100 drugmaker currently has a consensus ‘hold’ rating and an average price target of 1,579.76p.