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New drugs progress crucial for GSK results

The UK's biggest pharma company will be reporting 2016 numbers next week
February 2, 2017

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.