Shares in GlaxoSmithKline (LON:GSK) have jumped higher in today’s session as the blue-chip pharma group announced an R&D shake-up, including a push into genetic medicine with an equity investment in California-based 23andMe. The company, however, did not announce a demerger of its consumer healthcare division, despite recent speculation.
As of 12:49 BST, GSK’s share price had added 1.10 percent to 1,574.00p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having fallen into the red and currently standing 0.82 percent lower at 7,645.90 points.
GSK unveils R&D revamp
GSK announced in a statement today that it was setting out a new Research and Development approach which aims to capitalise on the assets in the group’s early-stage pipeline and will focus on science related to the immune system, the use of genetics and investments in advanced technologies.
“GSK has a long history of developing novel medicines that provide significant benefits for patients and today we are describing the next phase of innovation in R&D that will strengthen our pipeline and deliver a new generation of medicines and vaccines,” the group’s new chief scientific officer and R&D hear Dr Hal Barron commented in the statement.
As part of the shake-up, the FTSE 100 drugmaker announced in a separate statement that it had agreed an exclusive four-year collaboration with genetics company 23andMe, which will focus on research and development of innovative new medicines and potential cures, using human genetics as the basis for discovery. Additionally, GSK has made a $300-million equity investment in the California-based company.
Pharmco posts Q2 results
The FTSE 100 drugmaker updated investors on its second-quarter performance today, reporting sales of £7.3 billion, yielding adjusted earnings per share (EPS) of 28.1p. Reuters reports that analysts on average had forecast £7.21 billion in revenue and EPS of 26.1p, according to Thomson Reuters data.