GlaxoSmithKline (GSK)

[simoan]

OK. I've put together an updated spreadsheet comparing GSK with it's large pharma/biotech peers. Both tables are ordered by market cap (largest to smallest). This is the table from Feb 2021:


And this is the table updated with data as of the close on Friday 11th Nov 2022:


To ensure constant currency, data for GSK and AZN is taken from Stockopedia. All other data is from Seeking Alpha. This means there could be differences in how the two websites calculate certain items.

(*) Indicates the EBIT margin for GSK has been manually calculated using the 9 month numbers from the recent Q3 results for FY22 which exclude the demerged consumer healthcare business (Haleon). The EBIT margin for AZN is taken from Stockopedia who ignore the company's use of "CORE" numbers. The company itself quotes a CORE EBIT margin of 33% and a non-CORE margin of 8% in the recent Q3 results. I personally don't like the way AZN reports numbers; all smoke and mirrors as once pointed out in an FT article by Terry Smith.

Anyway, it's clear that if you ignore the Zantac cloud, GSK is even better value now than it was in Feb 21 compared to its peer group.

All the best, Si

[TheMotorcycleBoy]

Thanks for bringing these tables up to date, Si!

OOI did GSK attempt to offload the Zantac liability onto HLN? I guess now, Zantac is more a healthcare thing, than a being researched/brand-new ground breaking drug.

Matt

[simoan]

Thanks for bringing these tables up to date, Si!

OOI did GSK attempt to offload the Zantac liability onto HLN? I guess now, Zantac is more a healthcare thing, than a being researched/brand-new ground breaking drug.

Matt

I believe both GSK and Pfizer tried to push liability onto Haleon. This from the Haleon HY22 results back in September:

Update on Zantac

As Haleon stated in the Group's announcement on 11 August 2022, Haleon is not a party to any Zantac claims.

Haleon has notified GSK and Pfizer that it rejects their requests for indemnification on the basis that the scope of the indemnities set out in the joint venture agreement only covers their consumer healthcare businesses as conducted when the JV was formed in 2018. At that time, neither GSK nor Pfizer marketed OTC Zantac in the US or Canada.

All the best, Si

[TheMotorcycleBoy]

Thanks for bringing these tables up to date, Si!

OOI did GSK attempt to offload the Zantac liability onto HLN? I guess now, Zantac is more a healthcare thing, than a being researched/brand-new ground breaking drug.

Matt

I believe both GSK and Pfizer tried to push liability onto Haleon. This from the Haleon HY22 results back in September:

Update on Zantac

As Haleon stated in the Group's announcement on 11 August 2022, Haleon is not a party to any Zantac claims.

Haleon has notified GSK and Pfizer that it rejects their requests for indemnification on the basis that the scope of the indemnities set out in the joint venture agreement only covers their consumer healthcare businesses as conducted when the JV was formed in 2018. At that time, neither GSK nor Pfizer marketed OTC Zantac in the US or Canada.

All the best, Si

A can to be kicked down the road for a while I guess.