GSK's Savings Plan Can Offset Profitability Hit from HIV Patent Expiration
Dow Jones
Jul 28
1219 GMT - GSK's new cost-cutting plan means it is now possible for the U.K. drugmaker to offset the profitability hit from an HIV drug going off patent later this decade, Intron Health's Naresh Chouhan and Dominic Rose say in a note. The company aims to cut annual costs by 1.9 billion pounds by 2029, leading to a stable or improving operating margin coinciding with the patent-expiration period for HIV drug dolutegravir between 2028 and 2030. This suggests consensus estimates could go up by 50 to 100 basis points, Intron says. Still, the company's target of generating more than 40 billion pounds in 2031 sales looks out of reach, the analysts say. Shares trade 0.3% higher.
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