GlaxoSmithKline has suffered several setbacks this year. A cancer drug seen as a potential “blockbuster” failed a late-stage trial, while another drug suffered an unexpected delay owing to Covid-19, says Jamie Nimmo in The Times. Some analysts worry that these “serial disappointments” are becoming a “major concern for GSK’s... outlook”. But help may be at hand. Elliott, the US hedge fund led by activist investor Paul Singer, who is “feared in boardrooms” worldwide, took an undisclosed multibillion-pound stake in GSK last week. The news boosted the shares by 4.6%.
No wonder shareholders are frustrated, says Lex in the Financial Times. GSK’s share price has moved sideways since Emma Walmsley was appointed CEO four years ago. However, “one wonders what change is sought”. After all, while most activists “demand some form of corporate divestments or restructuring”, Walmsley “already has this in train”, with a “long-planned” flotation of GSK’s consumer health business due in the next year, “leaving a biopharma core behind”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Family investment companies explained: how the ultra wealthy shield their money from the taxmanWealthy families are increasingly turning to family investment companies to keep more of their money away from HMRC – but what are these arrangements and how do they work?
-
How to boost your pension pot as 35% of UK over 50s face huge retirement savings gapOver 50s are facing a later life with little to no funds - but there are steps you can take now to boost your pot.
-
Yoshiaki Murakami: Japan’s original corporate raiderThe originator of Japanese activism, Yoshiaki Murakami, was disgraced by an insider-trading scandal in 2006. Now, he's back, shaking things up
-
Cash in on the vast growth potential of the companies electrifying the worldOpinion Martin Todd, portfolio manager, head of sustainable equities, Federated Hermes, highlights three electrification companies where he'd put his money
-
Galliford Try has firm foundations for strong growthBuilder Galliford Try has a finger in a wide range of pies, notably important work in the public sector
-
Card Factory is a stand-out small-cap going cheapIn a digital world, we still value the personal touch. That’s good news for Card Factory, whose unique business model is suited to weather all economic storms
-
8 of the best smallholdings for sale nowThe best smallholdings for sale – from a medieval cross-passage farmhouse in Taunton, Somerset, to a former farmhouse with an orchard in the Welsh Marches
-
How much gold does China have – and how to cash inChina's gold reserves are vastly understated, says Dominic Frisby. So hold gold, overbought or not
-
How to invest in undervalued gold minersThe surge in gold and other precious metals has transformed the economics of the companies that mine them. Investors should cash in, says Rupert Hargreaves
-
Debasing Wall Street's new debasement trade ideaThe debasement trade is a catchy and plausible idea, but there’s no sign that markets are alarmed, says Cris Sholto Heaton
