The financial reporting season is not expected to be easy for big pharma. Fourth-quarter trading statements have missed expectations and many groups are struggling due to some of their top-selling drugs coming off patent last year.
IC TIP:
Hold
at
1548p
GlaxoSmithKline (GSK) is, however, expected to have weathered these difficulties well. Its high proportion of revenue from the lower-risk consumer healthcare division could enhance the numbers when they are reported next week.
Crucial, however, will be the success of new drugs. GSK has previously been heavily criticised for a lack of innovation in its pipeline and it will be interesting to see whether there has been any progress in the pharmaceutical division. Hold at 1,548p.