Image source: Shutterstock

Highlights

  1. GSK reported Q1 2025 sales of £7.5 billion, driven by a 17% rise in Specialty Medicines and signifucant growth in HIV and oncology treatments.

  2. The company anticipates five FDA approvals in 2025 and has 14 pipeline assets with >£2 billion peak sales potential by 2031.

  3. Shareholder returns remain positive with a 16p Q1 dividend, £273 million in share buybacks, and reaffirmed full-year guidance.

GSK (LSE:GSK) has made a positive start to 2025, posting growth in sales, profits, and earnings, with performance underpinned by its thriving Specialty Medicines segment and strategic investments in pipeline advancement.

In the first quarter of 2025, GSK reported total sales of £7.5 billion, reflecting a 2% increase at actual exchange rates (AER) and a 4% rise at constant exchange rates (CER). The Specialty Medicines division led the growth, with sales reaching £2.9 billion, marking a 17% increase, and notable performance across therapeutic areas such as Respiratory, Immunology and Inflammation (+28%), Oncology (+53%), and HIV (+7%).

Conversely, Vaccine sales declined by 6%, mainly due to reduced contributions from Shingrix (-7%) and Arexvy (-57%), despite a \20% increase in Meningitis vaccine sales. General Medicines held stable at £2.5 billion, with Trelegy delivering a 15% sales uptick.

GSK’s operating profitability saw a major leap, with total operating profit rising by 50% and total earnings per share (EPS) climbing 56%, primarily due to lower contingent consideration liabilities. On a core basis, operating profit and EPS both increased by 5%, reflecting Specialty Medicines performance coupled with disciplined investment in R&D, new product launches, and growth assets.

The company generated over £1 billion in operational cash flow and reported £0.7 billion in free cash flow, underscoring its robust financial health.

Promising Pipeline and Approvals

GSK’s innovation pipeline remains a major growth lever. The company expects five FDA product approvals in 2025, two of which — Penmenvy (a meningitis vaccine) and Blujepa (an antibiotic for uncomplicated urinary tract infections) — have already been cleared in Q1.

In addition to positive ACIP recommendations for Penmenvy and Arexvy (for adults aged 50–59), GSK anticipates further 2025 approvals for key assets including Nucala for COPD, Blenrep for multiple myeloma, and depemokimab for severe asthma and nasal polyps.

The long-term pipeline outlook is equally compelling, with 14 high-value opportunities expected to launch between 2025 and 2031, each holding potential peak year sales (PYS) above £2 billion.

Notably, the company received Breakthrough Therapy Designation for GSK'227 B7H3 ADC for second-line osteosarcoma, and data from CROI reinforced plans for ULA HIV regimens including VH184 and N6LS.

Strategic Partnerships and Development

GSK continues to pursue strategic business development, completing its acquisition of IDRx, forming a new partnership with ABL Bio focused on neurodegenerative diseases, and launching a research collaboration with the UK Dementia Research Institute to examine a possible link between shingles vaccination and dementia prevention.

Commitment to Shareholders

The Group declared a dividend of 16p per share for Q1 2025, with a full-year dividend of 64p expected, and continued progress on its £2 billion share buyback programme, repurchasing £273 million in shares during Q1.

Outlook for 2025

GSK reaffirmed its 2025 guidance, anticipating 3–5% turnover growth, 6–8% growth in core operating profit, and a 6–8% increase in core EPS.