Berenberg Turns Bullish on GSK as its $750 Million Deal Adds to Pipeline Momentum

GSK's share price has fallen 15% over six months, despite Q2 revenue growth of 6% to £7.986bn. A £1.3bn impairment on a failed drug development weighed on profits. New CEO Luke Miels announced a £1.9bn cost-cutting plan and increased R&D trials. The company's long-term performance has been weak, with a 21% gain over 20 years. GSK's dividend yield is 3.64%, and it targets £40bn in annual sales by 2031.

GlaxoSmithKline Capital Inc. (GSK) has completed a US$6.5 billion senior notes offering. The deal involved six tranches of notes. Sidley Austin LLP advised the underwriters.

GSK (NYSE:GSK) is acquiring global rights to a cancer drug from Chimagen Biosciences for up to $750M. The experimental therapy targets multiple myeloma, adding to GSK's oncology pipeline. The drug is not yet in clinical trials, with Phase I testing expected in 2027. GSK sees a $10B market opportunity in T-cell engagers by 2032, according to external forecasts.

HUTCHMED (HCM) and GSK (GSK) signed a global licensing deal for HMPL-A830, targeting colorectal, pancreatic, and lung cancers. HUTCHMED received a $110M upfront payment, with potential milestone payments up to $1.3B and tiered royalties. GSK gains worldwide rights outside Greater China, with HUTCHMED leading global Phase I trials starting in H2 2026.

GlaxoSmithKline (GSK) plans to close its Dresden vaccine plant by 2028, affecting 641 jobs. The closure is part of GSK's 'Accelerate Growth' cost-cutting program, aiming for £1.9 billion in annual savings by 2029. GSK's share price rose 6% after the announcement. The company cites falling demand and strategic redirection as reasons. The works council and union are developing a 'plan for the future' to explore alternatives.

GSK forecasts £40B sales, driven by oncology and specialty medicines, which now account for 40% of its business. The company aims to reduce costs by £1.9B while increasing R&D investment. Key products like Excentia and BLENREP face launch challenges, with updates expected in Q3. GSK also highlighted progress in hepatitis B treatment bepirovirsen and launches from its Nuvalent acquisition.