Home » Stocks & Shares » GSK share price: Pharmco to restart some doctor payments

GSK share price: Pharmco to restart some doctor payments

Tsveta van Son
  • October 5th 2018, 12:55
  • Last Updated: October 21st 2019, 15:12

GlaxoSmithKline (LON:GSK) will resume some payments to doctors, the blue-chip drugmaker has said. Reuters notes that while the FTSE 100 group’s no-payment pledge in 2013 marked a first for the industry, other drugmakers failed to follow suit, leaving it at a competitive disadvantage.

GSK’s share price has slipped into the red in today’s session, having given up 0.77 percent to 1,518.60p as of 12:36 BST. The decline is largely in line with losses in the broader UK market, with the benchmark FTSE 100 index currently standing 0.66 percent lower at 7,369.01 points. The group’s shares have been little changed over the past year, as compared with a near two-percent drop in the Footsie.

GSK to resume some doctor payments

GSK announced in a statement this week that it was updating its policy on working with healthcare professionals to allow payments to global experts who speak about the science behind the group’s medicines. The changes also include paying ‘reasonable travel costs’ except in the US for attending a GSK-organised standalone meeting, and directly paying registration fees for healthcare professionals to attend remote congress webinars and webcasts.

The company explained that those changes referred to “a select number of innovative products in a limited number of countries and apply to restricted time periods in a product’s lifecycle”.

Under the new policy, the pharmco will also expand its reporting of payments. The news comes after AstraZeneca (LON:AZN) signalled earlier this year that it was preparing to disclose payments to doctors in all countries in which it operates.

Analysts on London-listed drugmaker

UBS reaffirmed GSK as a ‘buy’ last week, valuing the shares at 1,700p. According to MarketBeat, the blue-chip pharmco currently has a consensus ‘hold’ rating and an average price target of 1,522.35p.

As of 12:56 BST, Friday, 05 October, GlaxoSmithKline plc share price is 1,520.60p.

About the author

Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

Leave a Reply

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.