GSK is worth a second chance

FOR many years now I have heard GlaxoSmithKline and its chief executive wax lyrically about the future pipeline of drugs which will take it to the next level.

GSK went as far as to hold an investor day in the autumn of 2015, the first in a decade, so that shareholders and analysts could better understand the depth and quality of that pipeline.

Whatever happens to the global economy, drug treatments – if expensive – are still more economic than invasive care and hospital stays.

Admittedly the performance of Glaxo shares was disappointing over the last year with the stock coming down sharply since reaching a high of 1645p in the early part of the year.

It is now changing hands for 1373p. Nevertheless, I have decided to give GSK (which I hold) a second chance in 2016.