GSK Agility In Drug Manufacturing

GSK Agility In Drug Manufacturing

GlaxoSmithKline (NYSE: GSK) recently announced this year that it has acquired Okairos AG (Okairos), a specialist developer of vaccine platform technologies for €250 million (approximately £215 million/$325 million) in cash. The acquisition reinforces GSK’s commitment to investment in innovative science. GSK’s vaccines business sits alongside pharmaceuticals and consumer healthcare as part of a balanced business and product portfolio capable of delivering sustainable sales growth. GlaxoSmithKline (GSK) is up $0.33 (0.6%) to $52.10 on heavy volume. Thus far, 1.8 million shares of GlaxoSmithKline exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $51.93-$52.46 after having opened the day at $52.13 as compared to the previous trading day's close of $51.77.

GlaxoSmithKline plc, together with its subsidiaries, discovers, develops, manufactures, and markets pharmaceutical products, over-the-counter medicines, and health-related consumer products worldwide. GlaxoSmithKline has a market cap of $125.3 billion and is part of the drugs industry. Shares are up 17.2% year to date as of the close of trading on Thursday. Currently 2 analysts rate GlaxoSmithKline a buy, 1 analyst rates it a sell, and 7 rate it a hold.

Christophe Weber, President, GSK Vaccines said: “This is a fantastic opportunity for patients and our research organisation as it is expected to contribute to the development efforts for an exciting new generation of vaccines, building on the excellent science and expertise of both companies.”

Riccardo Cortese, Chief Executive Officer and founder, Okairos, said: "I am extremely pleased with this agreement, which will enable GSK to build on the hard work we have put into developing our vaccines and platforms to the stage that they are at today.  With its considerable resources and know-how, I am confident that GSK is best-placed to maximise this opportunity to potentially transform the vaccines landscape.”

Investors can expect attractive long-term growth from innovation driven by megatrends. Health-care expenses now represent 17.6 percent of GDP nearly $600 billion more than the expected benchmark for a nation of the United States’s size and wealth. Privacy issues will continue to be a major concern. McKinsey estimates $300 billion to $450 billion in reduced health-care spending could be conservative, as many insights and innovations are still ahead. The companies that are successful today are collaborative, nimble, smaller and multidisciplinary. Applying compliance to these ecosystems is a priority. The traditional model is going away. Acquisitions of licensing is in a lot of momentum now.