logo-loader
viewGlaxoSmithKline PLC

GlaxoSmithKline target price upped by UBS due to HIV drug

The ‘buy’ recommendation was maintained while the target price was lifted to 1,950p from 1,900p

GlaxoSmithKline PLC - GSK target price upped by UBS over HIV drug, vaccine

Pharma giant GlaxoSmithKline PLC’s (LON:GSK) has received a target price increase to 1,950p from 1,900p by UBS, which maintained its ‘buy’ recommendation.

The change comes ahead of Wednesday’s full-year results, when its injectable HIV drug and Shingrix vaccine will be in focus.

READ: Mixed picture for UK pharma as AstraZeneca ‘top pick’ at Credit Suisse while GSK knocked by Barclays downgrade

The FTSE 100-listed pharma giant had to delay the cabotegravir and rilpivirine HIV treatment due to a late response letter by the US authorities.

Analysts at the investment bank said in a note the product, now expected to be launched in 2021, will be a major part of the ViiV joint venture with minority shareholders Pfizer and Shionogi.

It is set to boost the HIV business, which has seen aq flattening of US sales, to mid-single-digit revenue growth by 2023.

“US script trends for existing drugs in the HIV business indicate continued pressure on Tivicay and Triumeq but steady growth in newer drugs, in line with expectations,” analysts said.

Elsewhere, UBS forecasts £4bn of annual sales by 2026 for Shringrix, a vaccine for shingles.

“We note that management commentary at the start of 2020 refers to a ‘moderate increase’ in supply this year rather than the ‘slightly more doses in 2020’ flagged at the end of 2019,” analysts noted.

Shares were flat at 1,794.2p on Friday morning.

Quick facts: GlaxoSmithKline PLC

Price: 1663.4 GBX

LSE:GSK
Market: LSE
Market Cap: £83.48 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Integumen PLC to test anti-viral skin and dental products through tie-up...

Integumen PLC's (LON:SKIN) Gerry Brandon caught up with Proactive London's Andrew Scott after announcing its subsidiary Labskin has partnered with the University of Aberdeen to test anti-viral skin and dental products that might mitigate the transmission risk of the coronavirus...

3 hours, 35 minutes ago

2 min read