Is a glance at these FTSE 100 pharmaceutical companies advisable?
In the dynamic world of global trade, two of the UK's leading pharmaceutical companies, AstraZeneca and GlaxoSmithKline (GSK), have demonstrated resilience amidst the challenges posed by recent tariff policies.
As of today, AstraZeneca (LON:AZN), the largest stock in the FTSE 100 by market capitalisation, has seen its stock gain 3.4% following the release of its first half revenue increase of 11% to $28 billion on 29 July [1]. This growth comes despite the company not upgrading its forecast for the year, despite the strong financials reported.
GSK (LON:GSK), on the other hand, has seen its shares gain 3.9% as of 3.45pm following the release of its second-quarter results [2]. The company reported a 15% increase in EPS to 46.5p and a revenue increase of 6% to £8 billion [3]. The HIV franchise and oncology (cancer) division at GSK grew by 12% and 42% respectively in the second quarter [4]. Sales of speciality medicines at GSK rose 15% [5].
Trump's tariff regime, which includes a 15% tariff on most European goods to the U.S., has created export challenges for FTSE 100 pharmaceutical exporters [6][7]. However, companies with strong innovation and growth pipelines have shown remarkable resilience. A case in point is Novo Nordisk, a pharmaceutical company whose sales and operating profit have shown solid growth [1].
Investment advice favors buying growth-oriented pharmaceutical stocks such as Novo Nordisk, balancing tariff risks with strong fundamentals [1]. Derren Nathan, head of equity research at Hargreaves Lansdown, stated that AstraZeneca's pipeline progress adds confidence that the 2030 revenue target of $80bn will be met or beaten [8].
Weight loss drugs offer a potentially huge market for companies like AstraZeneca, with the sector showing growth prospects despite tariff pressures [9]. Meanwhile, GSK's prognosis is looking positive, according to Nathan [10].
It's important to note that while direct comprehensive sector-wide performance metrics for FTSE 100 pharmaceuticals under Trump's tariffs are limited, individual companies like Novo Nordisk have demonstrated solid quarterly sales growth and operating profit increases [1].
As of 30 July, AstraZeneca's stock has gained 9.6% this year [11], and GSK's shares have gained 7.8% so far this year [2]. Haleon's (LON:HLN) stock, however, has fallen 4.8% in the year to date [12].
In conclusion, despite the challenges posed by trade tensions, pharmaceutical giants AstraZeneca and GSK have shown resilience and growth potential. Investors looking for exposure to pharmaceutical growth despite tariff uncertainties may find attractive opportunities in companies like Novo Nordisk.
References: 1. Investment advice for Novo Nordisk 2. GSK's Q2 results 3. AstraZeneca's H1 results 4. GSK's Q2 performance 5. Haleon's Q2 results 6. Trump's tariff regime 7. Impact of tariffs on FTSE 100 pharmaceutical stocks 8. AstraZeneca's pipeline progress 9. Weight loss drugs market potential 10. Nathan's statement on GSK 11. AstraZeneca's stock performance 12. Haleon's stock performance
- The resilience of AstraZeneca, the largest stock in the FTSE 100, is reflected in its 3.4% stock gain, following the release of its first half revenue increase of 11% to $28 billion.
- In the realm of health-and-wellness, science plays a crucial role in the innovation and growth pipelines of pharmaceutical companies, such as AstraZeneca and GSK, which have demonstrated resilience amidst tariff challenges.
- As for finance, investment advice favors buying growth-oriented pharmaceutical stocks like Novo Nordisk, finding attractive opportunities in these companies despite tariff uncertainties.
- In the business world, companies with solid growth potential, like Novo Nordisk, have demonstrated solid quarterly sales growth and operating profit increases, even under the pressure of tariffs.
