We would particularly monitor the different strategic agreements that this company could implement with other pharmaceutical companies and organisations with the aim of furthering research and innovations.
The increasing sensitivity of countries and individuals to health requirements is also a significant growth indicator for this asset.
We would also follow merger and acquisition operations of this company that could, through their intermediary, increase this company’s global presence and its development in certain strategic markets.
It is also recommended to evaluate the risks related to new products launched on the market that could be disappointing in terms of sales after major investments in their development.
We would also monitor the regulations in this activity sector and watch for any major changes in them that may cause an increase or decrease in sales of the GSK Company.
Finally, the worldwide economic health will also of course exert a direct impact on the demand for medicines and health care.
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:
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.
Photo credits: ©Maxshot/123RF.COM
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
To anticipate the possible growth or future recession of the GSK group, it is necessary to know the stability and solidity of this company. This requires a good knowledge of the main strengths and weaknesses of this group, which we suggest you discover here in a little more detail.
Let us begin this comparative analysis by summarising the positive elements that the GlaxoSmithKline group has at its disposal to face the challenges of the future and therefore its main strengths:
Of course, the GSK pharmaceutical group does not only have its strengths, but also some weaknesses that are important to know about, and here are some specific examples:
Of course, these are the current strengths and weaknesses of this company and its stock market value. But these points are likely to change over time and certain events or changes in and around the sector may add strengths or weaknesses in the future. It will also be necessary to take into account news and events that may reinforce them or make them null or less important. Finally, each advantage or disadvantage has its own weight and this should also be taken into account.
The GSK Group's shareholder base is partly made up of a number of large institutional shareholders, including The Vanguard Group with 2.98% of the shares, BlackRock Investment Management with 2.59%, BlackRock Fund Advisors with 2.56%, Norges Bank Investment Management with 2. 45%, Legal & General Investment Management with 2.13%, Schroder Investment Management with 1.42%, Capital Research & Management with 1.37%, Dodge & Cox with 1.34%, Capital Research & Management with 1.28% and Thredneedle Asset management with 1.26%.
Of course, as the GlaxoSmithKline Group is a UK-based company, its shares are listed on the London Stock Exchange or LES. But it is also listed on the US market as its shares are traded continuously and in real time on the New York Stock Exchange or NYSE in the US. This dual listing makes it a particularly popular asset.
In order to analyse the GSK share price effectively, you should not be satisfied with a single analysis but rather carry out several in order to multiply the sources of different signals. Generally speaking, a technical analysis based on the study of stock market charts and a fundamental analysis based on external events and factors influencing the market are systematically carried out.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
