GSK Lifts Outlook As Specialty Medicines, Vaccines Fuel Growth

British pharmaceutical giant GSK Plc (NYSE:GSK) shares rose on Wednesday after reporting second-quarter results that surpassed analyst expectations and led the company to raise its full-year 2025 guidance.

Driven by exceptional growth in Specialty Medicines and Vaccines, GSK’s second-quarter sales reached $10.66 billion (7.98 billion British pounds), a 6% increase at constant currency, exceeding analyst estimates of $10.33 billion.

Core earnings jumped 15% at constant currency to $1.24 per share (46.5 pence) outperforming the consensus forecast of $1.12.

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The company attributed this core earnings growth to the strong performance of its Specialty Medicines and Vaccines divisions, coupled with higher royalty income and a disciplined escalation of investment in key research and development (R&D) areas, particularly within Oncology and Vaccines.

Vaccine sales jumped 5% (+9% at constant currency or cc) to 2.09 billion pounds, reflecting growth in Meningitis vaccines related to uptake following expanded recommendation and public funding of Bexsero in Europe, as well as growth in Shingrix driven by launch uptake in France and strong demand across several other European markets and Japan.

Arexvy sales reached 66 million pounds, up 6% (+13% cc). Meningitis vaccine sales increased 17% (+22% cc) to 379 million, while established vaccine sales of 787 million increased 2% (+6% cc). Shingrix sales reached 853 million pounds, up 3% (+6% cc).

In July, the FDA agreed to review the application to extend the indication of Arexvy (Respiratory Syncytial Virus Vaccine, Adjuvanted) to adults aged 18-49 who are at increased risk.

Also in July, the FDA extended the review period for the Biologics License Application (BLA) for GSK’s Blenrep combinations for relapsed or refractory multiple myeloma patients who have received at least one prior line of therapy.

Specialty Medicines sales grew by double-digit percentages (+10% and 15% cc) in the quarter to 3.33 billion pounds, reflecting continued growth across disease areas, with strong performances in HIV, Respiratory, Immunology & Inflammation, and Oncology. General Medicines sales fell by 10% (-6% cc) to 2.57 billion pounds.

GSK is progressing on 14 major pipeline opportunities, each with a potential value of over 2 billion pounds, set to launch between 2025 and 2031.

Phase 3 study for tebipenem, a new antibiotic for complicated urinary tract infections, was stopped early because it worked so well. The company plans to file for approval by the end of the year. Phase 3 development for depemokimab, aimed at treating COPD, has begun with the launch of the ENDURA study program.

Key trials expected to begin in the second half of 2025 include GSK’227, a B7H3-targeting antibody-drug conjugate for small cell lung cancer, GSK’981 (IDRx-42) for second-line treatment of gastrointestinal stromal tumors, Efimosfermin for MASH, and an ultra-long-acting injectable HIV treatment combining cabotegravir and rilpivirine, to be given every four months.

Tariff Outlook and Guidance

Addressing a broader macroeconomic concern, GSK acknowledged the U.S. Administration’s initiation of an investigation under Section 232 of the Trade Expansion Act, which seeks to ascertain the potential effects of pharmaceutical product imports on national security.

The company said it is well-positioned to respond to the potential financial impact of tariffs, with mitigation options identified. According to Reuters, GSK’s CFO indicated an anticipation of some tariffs coming in the second half of the year, which are expected to lower the gross margin slightly.

GSK raised its full-year 2025 guidance and says it includes tariffs enacted thus far and the European tariffs indicated this week. It now expects sales to increase toward the top of the 3%–5% range.

Core operating profit and earnings are also expected to grow towards the top end of the 6% to 8% range. Specialty Medicine sales are expected to increase in the low teens versus prior guidance of a low double-digit percentage.

Vaccine revenue is expected to decline by a low single-digit percent to broadly stable compared to the prior outlook of a decrease of low single-digit percent, and general medicine sales are expected to be broadly stable.

Price Action: At last check on Wednesday, GSK stock was up 3.57% to $40.37 during the premarket session.

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