UK – GlaxoSmithKline (GSK), one of British pharmaceutical giants has updated its strategy, outlook and growth plans on its vaccines and specialty medicine portfolio as it is set to split its consumer healthcare and pharmaceutical businesses in mid-2022.
GSK will now prioritize R&D and investment in vaccines and speciality medicines, which are expected to grow to around three-quarters of the company’s sales by 2026.
The British drug maker said it will also ‘optimise’ various therapies, with a newly defined product group containing all of new GSK’s primary care brands.
In particular, GSK will now prioritise R&D and investment in vaccines and speciality medicines, which are expected to grow to around three-quarters of the company’s sales by 2026.
This includes four core therapeutic areas – infectious diseases, HIV, oncology and immunology/respiratory.
The company’s decision to reshape its business model coincides with how biopharma corporations are expected to take shape in the next 20 years.
According to Deloitte, biopharma business models are expected to be reshaped by five forces that will likely require current players to evaluate shifting markets and determine how they will compete.
These companies are expected to continue to develop new ways to treat and cure a wide range of diseases.
Based on research from Acumen Research and Consulting, global infectious disease market is projected for a CAGR of around 5.7% between 2020-2027, as that of HIV drug market is pegged for a CAGR of 3.8% between 2020-2027 according to allied market research.
That of oncology is set for a CAGR of 7.4% between 2020-2027 according to Allied Market Research while the global immunology market size between 2021-2028 is set for a CAGR of 8.1%.
GSK’s remodeled strategies has great potential to tap into these vast market gaps with its innovation and research.
Looking ahead to 2026, GSK is expecting to deliver sales growth and adjusted operating profit growth of more than 5% and more than 10% respectively over the next five-year period.
In addition, by 2031 GSK is hoping to deliver sales of more than £33bn (US$45.8bn), driven by the commercial execution of the company’s current late-stage pipeline.