By Bhanvi Satija and Yadarisa Shabong
LONDON (Reuters) -GSK raised its 2025 sales and earnings forecasts on Wednesday as its speciality HIV and cancer medicines posted double digit growth, lifting the British drugmaker’s shares.
Although U.S. sales of its shingles vaccine Shingrix fell sharply, its shares gained as much as 4.3% to their highest level since May 2024. The stock, which has risen 25% so far in 2025, was up 2.16% at 1040 GMT.
GSK’s improved outlook comes as CEO Emma Walmsley prepares to hand over to Luke Miels early next year, with the drugmaker navigating U.S. tariffs and seeking new medicines to offset revenue declines as some top-selling drugs go off patent.
PRESSURE IN US VACCINE SALES
GSK said overall vaccine sales hit 2.68 billion pounds in the quarter ending September 30, beating analyst forecasts of 2.55 billion pounds.
Growth was mainly outside the U.S. where GSK reported a 15% drop in sales of its shingles vaccine, Shingrix.
“Near term, definitely cautious on the U.S. environment”, said Walmsley.
U.S. Health Secretary Robert F. Kennedy Jr has taken aim at vaccines, cutting funding for research and ousting the head of the Centers for Disease Control and Prevention.
French rival Sanofi reported lower sales of its flu shots in the U.S. last week, and flagged a “negative buzz” around vaccines more widely. GSK said sales of its influenza vaccines also declined in the U.S. due to competition.
Australian biotech CSL on Tuesday delayed plans to spin off its vaccine division citing “heightened volatility” and a greater than expected decline in U.S. vaccination rates.
GSK maintained its 2025 forecast for a low-single-digit decrease to broadly stable revenues for vaccines, which Walmsley said remained an important business for GSK longer term.
They made up just over a third of its third quarter revenues.
CHALLENGES AHEAD FOR INCOMING CEO
Investors are counting on Miels to drive GSK to hit its annual revenue target of more than 40 billion pounds ($54 billion) by 2031. Analysts currently estimate sales to be at about 34 billion pounds.
GSK expects annual revenue to increase in the range of 6% to 7%, and core earnings per share to rise by 10% to 12%. GSK said the forecast includes any tariffs enacted so far and potential impacts from 15% tariffs on Europe.
It previously expected revenues to grow by 3% to 5% and earnings to grow by 6% to 8%.
GSK’s core earnings per share were 55 pence on sales of 8.55 billion pounds for the quarter, compared with 47.1 pence on sales of 8.24 billion pounds expected by analysts in a company-compiled poll.
Revenue in its U.S. business grew 7% at constant exchange rate to 4.55 billion pounds.
($1 = 0.7451 pounds)
(Reporting by Unnamalai L and Yadarisa Shabong in Bengaluru, Bhanvi Satija in London; Editing by Rashmi Aich and Alexander Smith)
