S.W. Mitchell: Why we have bought unloved Glaxo

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SWMC European Fund manager Stuart Mitchell has taken a stake in GlaxoSmithKline following 'years' of pronounced share price underperformance from the pharma giant.

Over five years to 27 November, Glaxo's share price has risen 15.8%, against 28.1% for the broader FTSE 100. Fellow pharma AstraZeneca has climbed 72.7% over the same period. This year, meanwhile, Glaxo has fallen almost 8% compared with a 1.4% fall in the FTSE, belying the company's reputation as a defensive stock. Mitchell said the outlook for Glaxo, which is a 3.4% position in his SWMC European fund, appears to be improving in a number of significant ways. "Since the disappointing launches of new drugs Breo and Anoro, and higher than expected price pressure on Advair, expectatio...

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