If GSK PLC (LSE:GSK, NYSE:GSK) hoped spinning off its consumer household arm Haleon in July would lead to an instant re-rating to a supercharged US pharma level, it must be sorely disappointed so far.
Shares have barely moved either way since the separation, but next week’s results should give a clearer picture of where new GSK sits in the pharma league table.
Results from clinical studies recently suggest this might be a little higher than perhaps people previously expected, with its RSV vaccine the standout after delivering 83% efficacy in a phase III trial and on course to be fast-tracked in Europe.
Meningitis vaccine Menveo and ovarian cancer treatment Zejula are other potentially valuable additions to the portfolio if all goes well.
"Performance of the dolutegravir and cabotegravir franchises will be important for investor perception of the stock," said UBS.
On the financial front, the weak pound against the dollar should give a currency boost while some brokers analysing the expert testimony hearings in the Zantac liability case have been suggesting things might have shifted a little in its favour.
Pre the Haleon divestment, GSK said its targets were 5% compound annual sales growth and 10% in adjusted operating profits out to 2026, with a progressive dividend policy.
GSK has been doing better than recently helped by a post-covid recovery in demand for shingles vaccine Shingrix and analysts suggest that affirmation that the strong trend is continuing should mean the results get a good reception.
City analysts on average forecast third-quarter sales of £7.24bn, core operating profits of £2.3bn and core earnings per share of 39.70p, though UBS suggests it might do a little better than that on the sales front and is going for £7.49bn.