GSK beats expectations as specialist medicines drives profits in boost for new boss
GSK beat profit expectations in the fourth quarter, driven by demand for its HIV drugs and Asthma medicine.The pharmaceutical giant reported 8 per cent sales growth to £13.5billion, driven by a 17 per cent uplift in the speciality medicines division, which includes GSK's respiratory, oncology and HIV drugs.Vaccines grew 2 per cent, driven by shingles drug Shingrix, to £9.2billion, while general medicine sales slipped 1 per cent to £10billion.Core operating profit rose 18 per cent over the period. It is a steady start for new chief executive Luke Miels, who took over from Emma Walmsley at the beginning of the year. GSK sales were driven by demand for its specialist medicines He said: 'GSK delivered another strong performance in 2025. We expect this positive momentum to continue in 2026, which will be a key year of execution and operational delivery with strong focus on commercial launches and accelerating R&D.'Looking ahead, Miels will need to navigate US tariffs and subsequent policy challenges, as 52 per cent of sales comes from the region.Sales growth is expected to soften but still increase to between 3 and 5 per cent, with core operating profit growth of between 7 and 9 per cent. GSK also reaffirmed its ambition to reach £40billion in sales by 2031.Shares in GSK dipped at the open before trading up 1.52 per cent by 9am.Richard Hunter, head of markets at Interactive Investor said: 'There is little doubt that the sector is an exciting space, not only in terms of the leaps being made by technology but also by the major financial rewards which the larger players are chasing.'The rapid evolution of AI, for example, is decreasing both discovery and development time to market and GSK is firmly in the mix with the shares having risen by 39 per cent over the last year, as compared to a gain of 20.3 per cent for the wider FTSE100.'Even so, the market consensus of the shares as a hold reflects the ascending star of AstraZeneca which, in addition to its heightened awareness within the US after initiating its dual listing there this week, remains the preferred play in this burgeoning sector.'AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
Share or comment on this article:
GSK beats expectations as specialist medicines drives profits in boost for new boss
