SAVVAS NEOPHYTOU | PANMURE GORDON
GSK has underperformed in recent weeks, impacted mainly by missed upgrading opportunities from the pipeline. This transaction shows management will not sit idly by waiting for the pipeline to mature but will take brave decisions to unlock shareholder value. Managing to get up to seven times prospective revenues for its oncology business is no mean feat.
MICK COOPER | EDISON INVESTMENT RESEARCH
GSK is becoming more of a diversified healthcare company by strengthening its vaccine and consumer health divisions, following its deal with Novartis. The move away from oncology clearly gives a good return on investment on its current portfolio, but it will be interesting to see how effectively the company can monetise future investment in oncology.