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FTSE 100: GSK Joins Forces With China’s Zhifei for Shingles Vaccine
Global Markets

FTSE 100: GSK Joins Forces With China’s Zhifei for Shingles Vaccine

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The UK-based pharmaceutical giant GlaxoSmithKline has announced a deal with Zhifei to distribute its Shingles vaccine in China.

The FTSE-100-listed pharmaceutical company GlaxoSmithKline PLC (GB:GSK) joined forces with the China-based Zhifei to expand its global market share for its vaccine shingles. According to this deal, Zhifei will acquire exclusive distribution rights for GSK’s shingles vaccine with a payment of £2.5 billion. The company’s Shingles vaccine, Shingrix, is among its best-selling products. This collaboration aligns with and expedites GSK’s pledge to double global Shingrix sales, targeting over £4 billion by 2026.

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The GSK share price experienced a gain of 1.35% today at the time of writing.

Based in the UK, GlaxoSmithKline is a global pharmaceutical company with a presence in around 80 countries. The company’s portfolio includes three segments: Vaccines, Speciality Medicines, and General Medicines.

Specifics of the Deal

According to the terms of the agreement, Zhifei will acquire specified quantities of Shingrix over the initial three-year period. The distribution volumes are anticipated to be adjusted during this period according to demand. The partnership may be extended if mutually agreed upon. Moreover, the deal also provides an additional option for Zhifei to distribute GSK’s respiratory syncytial virus (RSV) vaccine, Arexvy, depending on the regulatory approvals in China.

The agreement marks a ground-breaking move for GSK in China, enabling the expansion of access to the vaccine to approximately 30,000 vaccination sites from around 9,000.

Over the last few years, the Chinese government has been supportive of approving new pharma products in the country. As a result, the big pharmaceutical companies are aiming for rapid expansion in China to capitalize on an aging population.

Are GlaxoSmithKline Shares a Good Buy?

According to TipRanks’ consensus, GSK stock has received a Hold rating based on a total of 11 recommendations from analysts. This includes three Buy, four Hold, and four Sell recommendations.

The GSK share price target is 1,460.0p, which is around 4% lower than the current trading levels.

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