GSK given fright by broker talk of HIV rival

6 July 2017

UK drugmaker GlaxoSmithKline (LSE: GSK) will be hoping for a stabilization in its share price on Thursday afternoon after a significant slide was started by a broker downgrading its stock recommendation.

Citigroup changed its buy rating to neutral and cut earnings forecasts by up to 9%, leading GSK’s share price to fall by 1.7% early in Wednesday’s trading, and on Thursday lunchtime its stock was again 1.3% down for the day at £16.04.

One of the reasons behind Citigroup’s less optimistic view on the drugmaker relates to its HIV business through its ViiV Healthcare unit, the fastest-growing part of its pharma division last year as sales rose by 37% to £3.56 billion ($4.59 billion). GSK's drug dolutegravir, which is used in the medicines Tivicay and Triumeq, has brought significant sales success.

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