In this article we shall explain how the GSK share price may progress over the coming months and years and therefore how to trade in it by completing pertinent and comprehensive analyses. To do so we will particularly examine this company’s activities and its activity sector together with GSK’s major competitors. We will also summarise recent significant partnerships that this company has implemented. Finally we offer our assistance for you in preparing a comprehensive fundamental analysis of this asset. To do this we will indicate the events and publications that it would be wise for you to monitor in priority.
General presentation of the GSK Company:
Before delving further into our study of the GSK Company, we would remind you of certain key facts concerning this company and its main activities. With a significant understanding of this group as well as the products and services it provides you will have an increased perception of how it may develop in the coming years and therefore how its share price may evolve on the stock markets.
The GSK Group is a British company specialised in the pharmaceutical sector. More precisely, it is currently the second largest company in this activity sector worldwide.
To better understand the activities of the GSK Group it is possible to categorise the different sectors according to the turnover they each generate and how:
- The production and sale of pharmaceutical products represent the major part of this company’s activities with over 56% of its turnover. These products are particularly destined for the treatment of respiratory illnesses with 41% of the turnover, HIV infection treatments at 27.3% of the turnover, and treatment of immune system problems with 2.7% of this company’s turnover.
- The production and sale of OTC and para-pharmaceutical medicines represent nearly 29.8% of this company’s turnover.
- Finally, the production and sale of vaccines generates 19.1% of the group’s turnover.
It can also be advantageous to know the geographical distribution of this group’s income which operates on an international level. In fact, only 3% of this company’s turnover is generated in the United Kingdom. The largest market of the GSK Group is the United States which generates 38.9% of its turnover, the remaining 58.1% is derived from various countries around the world.
Know the competition to GSK shares:
Now that you are familiar with the activities of the GSK Company we offer you the opportunity to learn about the environment in which this group operates. In fact it is essential to know each of this company’s competitors very well so you can take them into account in your future analyses. Here therefore is a detailed summary about each of this company’s main competitors:
- Johnson & Johnson: The major competitor of this sector is the American Group Johnson & Johnson which is one of the leading companies in the well being and health care sector with a range of pharmaceutical products in particular including medicines for the treatment of cardio-vascular illnesses, gastro-enteritis, immune problems, as well as dermatological and neurological problems. This group also produces and sells medical equipment and consumer medical products with OTC medicines and ophthalmological products among others. It actually owns 111 production sites throughout the world.
- Roche: Then we find the Roche Group which is specialised in the area of health research wherein the activities are divided into two with the pharmaceutical sector again in two parts with Roche Pharmaceutical and Chugai, and the diagnostics sector which is composed of four main divisions with diabetes, molecular diagnostics, professional diagnostics and tissue diagnostics. The group also develops treatments in different therapeutic areas including oncology, immunity, infectious diseases, ophthalmology and neuroscience.
- Merck: The Merck Group holds third position and is notably engaged in the development, production and sale of therapeutic products and prescribed vaccines. Among the activities of this group we note the sale of pharmaceutical products for the treatment of hypertension, osteoporosis, atherosclerosis, respiratory problems, bacterial and fungal problems, ophthalmological and urological illnesses, severe migraines, hair loss and other problems and illnesses. This company also sells vaccines and animal healthcare products.
- Novartis: Still on the subject of GSK’s competitors we find the Novartis Group which is one of the leading companies in the creation, production and sale of pharmaceutical products for the treatment of cardio-vascular illnesses, respiratory and dermatological problems, gastro intestinal infections, cancers, dysfunctions related to the central nervous system, and hormonal problems among others. It also produces and sells generic medicines and ocular care products. It currently employs over 125,160 workers.
- Pfizer: The Pfizer Company is another significant competitor to the GSK Company and is in fact the leader of the pharmaceutical sector worldwide. It specialises in vaccines, oncology and pharmaceutical products for the general public as well as generic medicines. It sells its products mainly in the United States and Germany.
- Novo Nordisk: We then also find the company Novo Nordisk which is specialised in the creation, production and sale of pharmaceutical products with medicines for the treatment of diabetes, obesity, haemophilia, plus growth hormones and hormone replacement products.
- Amgen: In the United States the Amgen Group is also a company to be monitored as a leading group worldwide in the sector of biotechnology. It notably produces and sells medicines for the treatment of cancer, metabolic problems, bone diseases, renal deficiencies and haemophilia.
- Astrazeneca: We would also closely follow the Astrazeneca group which is one of the top pharmaceutical groups worldwide and produces treatments for cardio-vascular and metabolic illnesses, respiratory and oncology illnesses as well as inflammatory problems, auto-immune illnesses, neurological and gastro-intestinal illnesses, as well as infectious diseases. It also offers study and research services for third parties.
- Sanofi: Finally, we would also recommend monitoring the Sanofi Company which is one of the leaders in this sector in Europe and which notably produces pharmaceutical treatments for cardiovascular illnesses, thrombosis, problems with the central nervous system (insomnia, multiple sclerosis, epilepsy), cancers and allergies amongst others. It also produces OTC and generic medicines as well as human vaccines. It owns 75 production sites worldwide and exercises its activities on an international level.
The strategic alliances implemented by the GSK Group:
Let us now examine the different partnerships that the GSK Group has implemented over recent years which have strongly influenced its stock market share price. In fact, these strategic alliances have often been followed by interesting movements of its share price on the stock markets so it can be beneficial to know how to detect them in advance and interpret them. Here therefore are some examples of this type of partnership.
- Myogen: Firstly, in 2006 the GSK Group announced a strategic partnership with the Myogen Company which led to a significant rise in their share prices on the stock markets. This partnership was related to the distribution of a new treatment for pulmonary arterial hypertension. It was in fact the Myogen Group that held the rights to this new treatment named Ambrisentan which was then undergoing phase III clinical trials. It offered GSK the distribution rights to this treatment on the American market. Also within the framework of this agreement, Myogen received an initial payment of 20 million dollars followed by a further payment of 80 million dollars depending on the sales figures and supplementary royalties.
- Siemens: Much later, in 2016 to be more precise, the group signed another strategic partnership with the Siemens Company. This strategic partnership that was on a global level enabled GSK to benefit from Siemens as a choice partner to strongly develop its automated production. In fact, within the framework of this agreement, Siemens became the favoured provider of GSK’s production, research and development sites worldwide. This new agreement actually consolidated a long standing partnership between the two companies and enabled GSK to renew its global strategy in terms of automation. Precise criteria were agreed with the establishment of this collaboration, notably in relation to the general direction of the two companies towards full support of this partnership and the promotion of transparency founded on mutual trust. Siemens and GSK thereby sought to create added value in terms of refined procedures, automated equipment and the control of supply and demand as well as automated systems of construction for this British laboratory’s sites. This alliance notably targeted modular production areas, the manufacturing of sterile batches of products, optimisation of machines and production lines and the production of medicines.
- Google: Still in 2016, GSK implemented a far reaching partnership with the American internet giant Google. In fact, the two companies created a joint company through the Google subsidiary Verily Life Science of which the American company held 45% with the majority held by the British laboratory. This joint venture which was named Galvenu Bioelectronics in honour of the Italian scientist Luidi Aloisio Galvani who discovered bioelectricity in the 18th Century during an experiment on frogs legs would benefit from funds of 640 million Euros over a period of seven years to finance the research, development and sales of treatments based on bioelectricity.