GSK - GlaxoSmithKline Or AbbVie: Choices In High-Yield Pharma

• GSK and ABBV are both attractively valued and high-yield picks available in the pharma space, discounted for their respective generics-eroded segments.
• We think that neither is a bad option in the long term, but would opt for GSK due to its lesser focus on oncology, a market that is becoming more and more crowded.
• Moreover, GSK has vaccines that should see COVID-19 tailwinds as people become concerned about co-circulation risks.
• GSK has also been more selective in its inorganic growth strategy, maintaining a healthier balance sheet.
• Finally, GSK is less exposed to the election-volatile US market with the help of its consumer healthcare business, which will also be a deleveraging mechanism once it spins off.

For further details see: