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Shares in GSK, Sanofi and Haleon fell sharply on Thursday (August 11) amid growing investor concerns about US litigation focused on a heartburn drug that contained a probable carcinogen, while Johnson and Johnson has decided to end sales of talcum powder after cancer claims. GSK shares were down 6.8 per cent, Sanofi's were down 6.9 per cent and Haleon's down per cent. GSK and Sanofi at various points sold the drug - originally branded as Zantac - which US regulators ordered off the market in 2020. Haleon, spun out as an independent listed company last month, comprises consumer health assets once partly owned by GSK. The prospect of impending litigation is not new. Among other disclosures, recently-listed Haleon had highlighted the risk of such lawsuits in its prospectus. The topic has arrived in investor consciousness in recent days it seems, but has been rumbling on in the background for a few years, Deutsche Bank analysts wrote in a note.

British pharmaceutical giant GlaxoSmithKline beat first-quarter sales and earnings forecasts on Wednesday (April 27), helped by demand for its Covid-19 therapy and shingles vaccine, as the company moves towards the July separation of its consumer health business. Profit after tax jumped 68 percent to £1.8 billion ($2.3 billion, 2.1 billion euros) compared with the start of 2021. Sales climbed 32 percent to almost £9.8 billion. "We have delivered strong first-quarter results in this landmark year for GSK, as we separate consumer healthcare and start a new period of sustained growth," chief executive Emma Walmsley said in the earnings statement. "Our results reflect further good momentum across speciality medicines and vaccines, including the return to strong sales growth for Shingrix and continuing pipeline progress." The shingles vaccine generated £698 million in quarterly sales, beating analyst estimates of 528 million. Walmsley is seeking to reshape GSK after facing fierce investor criticism over the company's delay in producing Covid jabs and treatments.

New GSK raised its 2022 forecast for the second time this year, after third-quarter earnings and sales topped estimates, continuing its strong start as a standalone prescription medicine and vaccine business since carving out its consumer health division Haleon. After years of underperformance relative to its peers and missing out on the lucrative market for the first set of COVID-19 vaccines, GSK has delivered a string of strong results. The latest is led by a record quarter for its blockbuster shingles vaccine Shingrix and higher-than-expected revenue from its COVID therapy, Xevudy. Having survived a revolt by activist investors Elliott and Bluebell last year, GSK's prospects have been boosted by clinical trial success, though concerns remain around U.S. litigation over heartburn drug Zantac. Thousands of lawsuits have been filed in the United States against a raft of drugmakers over allegations the heartburn drug contains a probable carcinogen.

Pharmaceutical giant GlaxoSmithKline aims to get its respiratory syncytial virus (RSV) vaccine to regulators for review later this year, after interim data showed the vaccine was effective in a keenly-watched late-stage study involving older adults. RSV is a leading cause of pneumonia in toddlers and the elderly, but the complex molecular structure of the virus and safety concerns have stymied efforts to develop a vaccine since the virus was first discovered in 1956. Companies including Pfizer, J&J, Sanofi, Moderna and AstraZeneca are also racing to get an RSV therapy or vaccine approved. The latest GSK trial is the first to show statistically significant efficacy for RSV in adults aged 60 years and older, the British drugmaker said of the ongoing study on Friday (June 10). If approved, the RSV vaccine is expected to generate billions for GSK, which is already the world's biggest vaccine maker by sales but has faced pressure from activist investors such as Elliott Management who have urged the London-based company to shore up its drug pipeline.

Consumer healthcare group Haleon on Thursday announced that it has entered into a binding agreement for the sale of the ChapStick brand to Suave Brands Company, a company owned by American private equity firm Yellow Wood Partners. The British consumer healthcare company has agreed to sell its lip balm brand to Suave for about $430 million in cash and a minority interest in the buyer, valued at around $80 million. Haleon, which was spun off from the GSK Group in July 2022, said that cash proceeds from the sale would be used to pay down debt. ChapStick generated £112 million ($142.5 million) in revenue in 2023, said Haleon, adding that the sale is likely to close in the second quarter of 2024. Brian McNamara, Chief Executive Officer, Haleon, said: "Today's announcement is consistent with Haleon being proactive in managing our portfolio, and being rigorous and disciplined where there are opportunities for divestment. "While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon.