Why is GSK plc (GSK) One of the Best Affordable Healthcare Stocks to Buy Now?

GSK plc (NYSE:GSK) is one of the best affordable healthcare stocks to buy now. GSK plc (NYSE:GSK) announced on December 19 an agreement with the United States administration to lower the cost of prescription medications for patients in the US, which includes the company’s broad respiratory portfolio targeting the treatment of over 40 million Americans suffering from respiratory conditions such as COPD and asthma.

The agreement entails GSK plc (NYSE:GSK) lowering the price of certain medicines in Medicaid, along with launching new products with a higher balance pricing approach that recognises the value of innovation across developed nations. Management reported that the agreement satisfies all four actions requested by President Trump in his July 31st letter.

GSK plc (NYSE:GSK) added that it would also “make most” of its inhaled respiratory portfolio, along with other products available to patients, on a direct purchasing platform offering up to 66% of savings.  In addition, management reported that as part of the President’s Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), the company would support the resilience of the US supply chain for critical medicines through securing a reserve of albuterol (also known as salbutamol) for the US. Albuterol is the active ingredient in several inhalers that relieve symptoms of COPD and asthma.

While the agreement’s detailed terms remain confidential, management added that the entered agreements covers both GSK plc (NYSE:GSK) and ViiV Healthcare and exclude the two from s232 tariffs for 3 years.

Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global biopharma company that develops and distributes a range of vaccines, medications, and consumer health items. It is based in the United Kingdom and has over 20 vaccines in its portfolio. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer, among others.

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Disclosure: None. This article is originally published at Insider Monkey.