GSK has today posted a better-than-expected fourth quarter and lifted its 2031 sales target to nearly $50 billion as the British drugmaker aims to invest heavily in its specialty medicines to offset weakness in vaccine.
GSK’s fourth-quarter earnings topped estimates as strength in its HIV and oncology portfolio offset a fall in sales of its respiratory syncytial virus (RSV) and shingles shots.
“We are increasing and prioritising R&D investment to promising new long-acting and specialty medicines in Respiratory, Immunology & Inflammation, Oncology and HIV,” CEO Emma Walmsley said in a statement.
Walmsley’s bet on blockbuster RSV vaccine, Arexvy, has hit hurdles in the US, including changes in public health agency recommendations, prioritisation of other vaccinations such as Covid-19 and lower seasonal infections.
Since taking the helm of GSK in 2017, Walmsley has returned the company to growth with a focus on cancer and infectious diseases to counter a combination of patent expiries and declining revenue from its bestsellers by 2030.
GSK expects revenue to grow between 3%-5% in 2025, a slower pace compared with the 7% growth it reported today for 2024, mainly due to lower sales of its vaccines in the US.
Analysts had expected sales to grow about 3.5% this year, according to a company-compiled consensus.
The British drugmaker lifted its 2031 sales forecast to more than £40 billion from £38 billion it targeted earlier.
The company reported core earnings per share of 23.2 pence on sales of £8.12 billion for the quarter ended December 31, compared with 19 pence on sales of £7.75 billion expected by analysts in an LSEG poll.
GSK also said it would buy back £2 billion worth of shares over the next 18 months.
Revenue from its vaccine business in 2025 is expected to see a decrease of a “low single-digit per cent”, it said.
