GSK's New CEO Drives Surge in Shares with Bold Vision

GSK's new CEO, Luke Miels, focuses on enhancing sales growth and accelerating drug development. Despite imminent patent expiries for HIV drugs, Miels assures stable capital allocation strategies and aims for deals that fit GSK's late-stage pipeline, promising a strong commercial future by 2031.

GlaxoSmithKline's new Chief Executive Officer, Luke Miels, announced on Wednesday a strategic plan aimed at boosting sales and speeding up the development of new medicines. This strategy will focus on enhancing standard care programs and executing bolt-on deals to navigate the company through significant growth phases.

In a recent conference call with journalists, Miels emphasized the need for accelerated business development to meet the ambitious sales target of over 40 billion pounds by 2031. This announcement caused GSK's shares to climb to 2,055 pence, a 5.6% increase, marking their highest level in nearly 25 years.

While GSK plans steady capital allocation, pursuing deals in the 2- to 4-billion-pound range, Miels is adamant on acquiring assets that are "hiding in plain sight" to fortify its late-stage pipeline. This, along with the potential of GSK's specialty medicines business, positions the company for strong growth despite challenges within its vaccine business.