Of the major pharmaceuticals in the US and Europe, Glaxo has the largest and most diversified drug pipeline in crucial Phase 3 trials or recently approved. Set against this, the schedule of expiries on its current patents is faster than the rest of the sector. Particular strengths lie in Glaxo's portfolio of vaccines, both for cancer and pandemics, and its treatments for respiratory diseases. Despite the vagaries of the US Food and Drug Administration's attitudes and systems of approval, and the threat of generic competition for all the major pharmaceutical companies, the investment case for Glaxo is simple: the market is currently undervaluing the pipeline. Add in earnings growth, a large buy-back programme and a healthy dividend yield, and the potential upside for the investor at this stage is significant.
| Sedol |
Type |
Price |
Date |
| 0925288 |
Buy |
£ 11.141 |
19/06/2008 |
|
