GSK share price was in the red on Friday shedding its weekly gains. The stock has climbed by more than 9% in the past 3 months and 6% in the past month. However, the GSK stock is trading 20% below its highest level this year in July. Its total market capitalization has climbed in the past month to £60.74 billion.
Pharma Shares in the Spotlight
GSK share price has been in the limelight for the past few days after making headlines mid-week. The pharmaceutical giant was among the top movers in the FTSE 100 mid-week. The company’s shares soared after a US judge dismissed thousands of lawsuits claiming that the heartburn drug Zantac caused cancer.
US district judge Robin Rosenberg in Florida on Tuesday dismissed thousands of lawsuits in federal court on the basis that they lacked admissible primary evidence. The ruling was a significant win for pharmaceutical companies GSK, Sanofi, Pfizer, and Boehringer Ingelheim.
The ruling by judge Robin can still be appealed against, and the decision does not directly affect thousands of similar cases pending in state courts around the country. In a statement, an analyst at SVB Securities said that,
“While we can’t rule out appeals… or some state court litigation proceeding, the comprehensive dismissal by Judge Rosenberg of the plaintiffs’ arguments is compelling for the defendants,”
GSK said it would continue to defend itself vigorously, including against all claims brought at the state level.
GSK Share Price Outlook
The daily chart shows that the GSK share price has been on a strong rally in the past few weeks before pulling back. At the time of writing, the stock was trading 1.28% lower at 1464.6p. It is still moving above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is neutral at 55.
The stock is likely to bounce back in the near term. A move above the resistance level at 1555p will initiate a bull run. However, a continued bearish trajectory will have sellers eyeing the important support level at 1375p.