GlaxoSmithKline Shares Slip On Weaker Profit Forecast For 2021, Plans To Cut Dividend

GlaxoSmithKline Plc (NYSE: GSK) expects profit to fall this year, as the company cites an increase in research spending in pursuit of the next blockbusters.
Earnings per share are expected to decline by a mid-to high-single-digit percentage. It is planning to more than double the number of blockbuster drugs in its portfolio by 2026.
Turnover for 2020 inched up 1% to £34 billion, driven by a 12% in pharmaceuticals and offset by a 3% dip in pharmaceuticals and lower vaccine revenue.
Profit before tax was 12% higher at £6.9bn, while earnings per share surged 23% to 115.5p due to cost control measures.
The company plans to announce a new distribution policy, implemented from 2022 onwards, to support growth and investments. Expected to be lower than the current value. Shareholders will receive a final dividend of 80p per share in FY2021.
GSK added that it is on track to separate two new standalone Biopharma and Consumer Healthcare companies in 2022 to save £300 million annually while it also made £1.1 billion from divestments.
Earlier today, GSK announced a COVID-19 vaccine collaboration with CureVac NV against variants of the coronavirus.
Price Action: GSK shares are trading lower by 5.59% at $35.49 on the last check Wednesday.