Overview Of Two Healthcare Stocks: GlaxoSmithKline Plc and AstraZeneca Plc

Overview Of Two Healthcare Stocks: GlaxoSmithKline Plc and AstraZeneca Plc

GlaxoSmithKline Plc

GlaxoSmithKline Plc (LON: GSK) is a science-led international healthcare company helping people in feeling better and living longer. The company focuses on three priorities which are Performance, Innovation and Trust. The company is a responsible company and pledges to use technology and science to deliver health requirements and making products inexpensive and available to be a contemporary employer. The company is the first in access to Medicines Index since the assessment began in 2008 and has donated £224 million in 2018 to community health programmes.

GSK - News Updates

On 23rd December 2019, company’s (majority-owned) ViiV Healthcare, announced that it had received complete response letter from the USFDA for the use of trial rilpivirine and cabotegravir long-acting treatment in the therapy of HIV-1 infection in virologically repressed adults.

On 17th December 2019, the 0.37 million ordinary shares of 25 pence each were announced to be admitted to the Official List. The share will be issued under the 2009 Deferred Annual Bonus Plan.

On 02nd December 2019, the company announced that it issued share capital which comprised of 5,382.8 million shares of 25 pence each, out of which 393.5 million ordinary shares were held in Treasury. The total number of voting rights in the company was 4,989.3 million.

 

GSK - Financial Performance

On 30th October 2019, the company announced its third-quarter results for the year 2019.

The company’s Turnover increased to £9.4 billion in the third quarter of 2019, a rise of 16.04 per cent AER and 11 per cent CER as compared to the third quarter of 2018. The gross profit increased to £6.1 billion in the third quarter of 2019, a rise of 12.53 per cent AER and 7 per cent CER as compared to the third quarter of 2018.

The operating profit increased to £2.1 billion in the third quarter of 2019, a rise of 12.4 per cent AER and 3 per cent CER as compared to the third quarter of 2018. The profit before taxation increased to £2.0 billion in the third quarter of 2019, a rise of 14.4 per cent AER and 4 per cent CER as compared to the third quarter of 2018.

The earning per share increased to 31.4 pence in the third quarter of 2019, a rise of 9.02 per cent AER and decrease of -1 per cent CER as compared to the third quarter of 2018.

(Sources: LSE)

 

GSK – Share Price Performance

On 31st December 2019 as at 11:37 AM GMT, while writing the report GSK share price was trading at GBX 1,770.96 per share on the London Stock Exchange, which was down by 1.50 per cent or GBX 27.04 per share, as compared to the GBX 1,798.0 per share, the previous day’s closing price.

The 52-week highest share price was GBX 1,850.40, which was reported on 20th December 2019, whereas the 52-week lowest share price was GBX 1,429.80, which was reported on 28th January 2019. The current share price was lower by 4.29 per cent from the 52-week highest price, whereas it was higher by 23.86 per cent from the 52-week lowest price.

The company’s market capitalisation was reported at GBP 89.71 billion at the time of writing. The free float of the GSK was reported at 4.94 billion and, the share outstanding was reported at 4.99 billion.

At the time of writing, the beta of the GSK share was reported at 0.89, which means its volatility is low as compared to the benchmark market index’s movement.

AstraZeneca Plc

AstraZeneca Plc (LON: AZN) is an international, science-led biopharmaceutical company and its pioneering medicines are used by millions of patients globally. The company's constantly evaluates the current and potential future requirements of its scientists to make sure that they are able to work with the best gears in the field, and promote joint partnerships with other scientific organisations who may benefit from these instruments.

AZN - News Updates

On 30th December 2019, the company released the information regarding Lynparza’s authorisation for use in the US for preventive treatment of patients with fatal pancreatic cancer whose infection has not developed for at least sixteen weeks of a 1st-line platinum-based chemotherapy regimen.

On 23rd December 2019, the company reported that glycopyrronium /budesonide/formoterol fumarate (known as PT010 outside of China and as Breztri Aerosphere in Japan) has been authorised in China for the therapy of chronic obstructive pulmonary infection.

On 23rd December 2019, the company announced that Enhertu (trastuzumab deruxtecan) had been approved by the US Food and Drug Administration for the treatment of patients with unresectable or metastatic HER2-positive breast cancer after more than two prior anti-HER2 based regimens.

On 16th December 2019, the company completed a deal with Cheplapharm to give away its trade rights to Seroquel and Seroquel XR in Europe and Russia. The company garnered the payment of $178 million with future sales-contingent payments of around $61 million.

 

AZN – Financial Highlights

On 24th October 2019, the company announced its year to date and third-quarter results for the year 2019.

The product sales increased by 13 per cent in the year to date and increased by 17 per cent at CER to $17,315 million in FY2019 due to favourable inventory and gross-to-net movements.

The reported gross profit margin increased by 1 per cent in the year to date to 80% in FY2019 due to partially reflecting the mix of sales, whereas the core gross profit margin increased by 1 per cent in the year to date to 81% in FY2019.

The reported operating expense increased by 11 per cent in the year to date with a 15 per cent increase at CER to $12,871 million in FY2019, which represented 73 per cent of total revenue. In contrast, the core operating expense increased by 3 per cent with a 6 per cent increase at CER to $10,537 million, which represented 59% of Total Revenue of FY2019.

The reported Tax Rate in the year to date was 27 per cent in FY2019 versus the 18 per cent YTD in FY2018.

The reported EPS reported in the year to date declined by 11 per cent with 15 per cent decline at CER to $0.79, whereas the core EPS reported in the year to date was inclined by 39 per cent and with 38 per cent increase at CER to $2.61 in FY2019.

 (Sources: LSE)

AZN – Share Price Performance

On 31st December 2019 as at 12:35 GMT, while writing the report AZN share price was trading at GBX 7,607.00 per share on the London Stock Exchange, which was down by 0.61 per cent or GBX 47.00 per share, as compared to the GBX 7,654.0 per share, the previous day’s closing price.

The 52-week highest share price was GBX 8,227.88, which was reported on 07th October 2019, whereas the 52-week lowest share price was GBX 5,312.0, which was reported on 28th January 2019. The current share price was lower by 7.55 per cent from the 52-week highest price, whereas it was higher by 43.20 per cent from the 52-week lowest price.

The company’s market capitalisation was reported at GBP 100.13 billion at the time of writing. The free float of the AZN was reported at 1.31 billion and, the share outstanding was reported at 1.31 billion.

At the time of writing, the beta of the AZN share was reported at 0.78, which means its volatility is low as compared to the benchmark market index’s movement.

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