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  "documentTitle": "Elliott Management GSK Letter July 2021",
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  "presentationDate": "2021-07-01 00:00:00",
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      "text": "The sell-side takes a similarly jaded view. For instance, Gilead's HIV business is modelled in detail by most sell-side analysts, who build market-sizing models and make detailed assumptions as to what share of the market Gilead can capture. In contrast, GSK's HIV business is often met with a shrug ('the dolutegravir LOE will drive the business off a cliff') instead of detailed market modelling and survey work, which shows that ViiV has a promising future. Further, some analysts do not even include RSV in their model, despite this being a phase three asset, with a multi-billion peak sales opportunity, and GSK having a strong track record in vaccine development. The buy-side takes a similar low-confidence approach: Despite GSK outlining a promising future for ViiV beyond the dolutegravir LOE, GSK's share price barely reacted to the 23 June Investor Update. In summary, despite the bright fundamental prospects of New GSK, the market takes a dim view as a result of GSK's lack of credibility.",
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      "text": "While the aforementioned causes of GSK's underperformance are addressable, they have caused extremely weak sentiment among both existing shareholders and potential investors who have chosen not to own GSK shares. For example, the 2018 Tesaro deal showed a lack of confidence in management's decision-making. GSK's share price fell by 12% on an absolute basis and more than 8% relative to peers in the week after the Tesaro deal was announced. The market's reaction destroyed more than $10 billion of GSK's market capitalisation, despite the transaction value being only $5 billion. The market's reaction conveyed concerns that ran much deeper than the fundamental merits of the Tesaro acquisition. Although it appears today that the Tesaro deal will likely generate an acceptable return, the signal at the time was clear: The market did not trust GSK to make the right decisions.",
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      "kind": "paragraph",
      "text": "These twin overhangs, which were finally addressed at the Investor Update, were avoidable mistakes that negatively impacted the share price.",
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