7. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders In Q2 2024: 36
GSK plc (NYSE:GSK) is a global pharmaceutical company headquartered in Brentford, United Kingdom. As it has been operating in the pharmaceutical industry for more than three centuries, the firm has been able to build a diversified product portfolio. This enables GSK plc (NYSE:GSK) to sell generic and specialty medicines, as well as vaccines — the end result of which means that it can earn consistent revenue even if consumer and healthcare spending is low in a tough economy. GSK plc (NYSE:GSK) has a whopping £2.9 billion in cash and equivalents, which enables it to keep the pedal to the metal when it comes to a robust pipeline. The firm currently has 70 new drugs in its pipeline, out of which seven are in phase three testing. With this pipeline, GSK plc (NYSE:GSK) aims to generate £38 billion in sales in 2031. If achieved, this would enable the firm to grow its current trailing twelve month revenue of £31 billion by 21%. Consequently, investors have to keep up with any trial results, and also ensure that GSK plc (NYSE:GSK)’s high growth drugs such as Nucala and Cavenuva maintain their momentum.
GSK plc (NYSE:GSK) is leading the market with its HIV portfolio. Here’s what management shared during the Q2 2024 earnings call:
“Our oral 2-drug regimens and long-acting injectables continue to transform the HIV marketplace. Dovato delivered sales of £551 million in the quarter. The strong body of clinical data and real-world evidence reinforcing the efficacy and durability of this medicine continues to grow. At the International AIDS conference last week, results of the PASO DOBLE study a large head-to-head randomized clinical trial of Dovato compared against the 3-drug regimen, Biktarvy, showed non-inferior efficacy and significantly less weight gain.
This is important because we know people living with HIV are concerned about taking more medicines as they age as well as the long-term risk of metabolic diseases that can come with weight gain. Our long-acting portfolio also continues to perform strongly, delivering more than 50% of total HIV growth. Cabenuva grew 42%, driven by patient preference and proven and durable efficacy. CASM LATITUDE data presented at CROI and data from real-world cohorts that include over 10,000 people living with HIV in diverse settings has resonated strongly with physicians and has supported increased breadth and depth of prescribing. Apretude grew more than 100% in the quarter. This medicine has demonstrated proven superior efficacy compared with daily orals and a positive safety profile and high patient preference.
As a reminder, the registrational HPTN 084 study of PrEP in women was the first to show 0 infections in participants who received injections as described per protocol. We believe that long-acting therapies are the future of HIV care, empowering people impacted by HIV with choice and addressing the barriers standing in the way of reaching the end of the HIV epidemic. Looking at the long-acting market, we can see that the treatment market is currently approximately 10x larger than the PrEP market at about £20 billion, which will have a significant impact on the sales potential for long-acting options. In the long-acting inject for treatment setting, there are no competitor launches planned before 2028. We continue to see strong progress across our pipeline.”
