AstraZeneca vs GlaxoSmithKline: a clear coronavirus winner?
The pharmaceutical industry has enjoyed a strong 2020. These are companies which – in the eyes of investors – could really benefit from the period of immense disruption.
But financial results from the UK’s two pharma giants reveal that there is another trend in play here: focus on Covid-19 has dented demand for other, less pressing treatments. Routine GP appointments, prescriptions and subsequently pharma sales have declined in the last three months. That was reflected in half year results at GlaxoSmithKline (LON: GSK) where an 8% like-for-like decline in sales to £7.6bn came in behind analyst estimates. Falling demand was experienced across all three of the group’s operating divisions – pharmaceuticals, vaccines and consumer health – with the high margin vaccines division (21% of revenue and 33% of operating…