UBS GlaxoSmithKline PLC Target Raised Due to HIV Drugs

The buy recommendation was retained, while the price target was raised from 1,900 pence to 1,950 pence

The pharmaceutical company () has received a target price increase from UBS from 1,900 pence to 1,950 pence, with the purchase recommendation being retained.

The change comes ahead of the full year results on Wednesday, when the injectable HIV drug and Shingrix vaccine will be in focus.

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The pharmaceutical company, which is listed on the FTSE 100, had to postpone HIV treatment with cabotegravir and rilpivirine due to a late response from the US authorities.

Investment bank analysts said in a release that the product, which is now expected to hit the market in 2021, will be an integral part of the ViiV joint venture with minority shareholders and Shionogi.

It will boost the HIV business, which has seen sales flattening in the US, to mid-single-digit sales growth by 2023.

“US script trends for existing drugs in the HIV business suggest continued pressure on Tivicay and Triumeq, but steady growth in newer drugs in line with expectations,” the analysts said.

For Shringrix, a shingles vaccine, UBS forecasts annual sales of £ 4 billion by 2026.

“We note that management’s comment at the beginning of 2020 points to a” moderate increase “in supply this year rather than the” slightly higher doses in 2020 “reported at the end of 2019,” the analysts said.

The shares were unchanged at 1,794.2 pence on Friday morning.

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