GLAXF - GSK plc: An Undervalued Vaccine Behemoth That Is Resuming Growth; Buy

2024-02-15 02:45:38 ET

Summary

• GSK plc is a multinational “big pharma” and long-time leader in the vaccine, HIV, and respiratory disease areas.
• Shingrix and RSV vaccine sales in 2023 exceeded expectations and appear to show no sign of slowing down.
• GSK’s franchise only faces minor patent cliffs over the next 5-10 years, supporting its long-term growth plan.
• I believe the ongoing Zantac litigation risk is overblown and that it will not be a key factor determining GSK’s valuation in the long run.

GSK overview

GSK plc (GSK) is a British multinational "Big Pharma" established in 2000 by the merger of Glaxo Wellcome and SmithKline Beecham. It possesses a leading position in the traditional vaccine (Not mRNA vaccine) and HIV area. In fact, GSK produced the first FDA-approved malaria vaccine. Currently, its best-selling vaccine is Shingrix for Shingles, which netted ~$4.33 billion in sales in 2023 and is rapidly growing still, as it just started to enter developing markets....

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