GSK PLC (LSE:GSK, NYSE:GSK)’s second-quarter figures will provide the first clues as to whether the business will flourish or founder following the £30bn demerger of its consumer business, Haleon.
Remember, chief executive Dame Emma Walmsley and her finance team have re-set guidance - and it suggested the drugs giant will positively flourish as an independent entity.
For 2022, the City has been told to expect revenue growth of 5% to 7%, leading to a 12% to 14% increase in operating profits.
Any early signs of underperformance against those targets will be punished harshly.
Overall, prescription data suggests Q2 may not exactly blow the doors offs.
UBS is expecting GSK’s sales of shingles treatment Shingrix to be 14% higher year-on-year, but down on a bumper Q1 performance. Growth of the HIV franchise is expected considerably lower than that seen in the first three months, the investment bank added.
Walmsley described the intricate interrelationship between GSK and Haleon as a ‘Gordian knot’ that it’s hoped will unravel over time.
The Financial Times, a recent article, pointed out the demerger will strengthen GSK’s balance sheet by reducing the debt burden.
It will also result in a £7bn dividend payment that could then be recycled into bite-sized acquisitions.