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GSK plc (GSK - Free Report) reported first-quarter 2025 core earnings of $1.13 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.08. Core earnings rose 4% year over year on a reported basis and 5% at a constant exchange rate (CER), driven by favorable product mix, higher royalty revenues and lower net finance costs during the quarter.
Quarterly revenues rose 2% on a reported basis and 4% at CER to $9.46 billion (£7.52 billion), driven by the rising sales of its HIV and oncology products, partially offset by the declining vaccine sales. However, the top line missed the Zacks Consensus Estimate of $9.54 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
All growth rates mentioned below are on a year-over-year basis and at CER.
GSK’s Segmental Discussion
GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines rose 17%, General Medicines sales remained stable. Sales in the Vaccine franchise declined 6%.
GSK’s Specialty Medicines Drives Top Line
HIV sales rose 7% during the quarter, driven by an increase in patient demand for the company’s two-drug regimens — Dovato and J&J (JNJ - Free Report) -partnered Juluca — and long-acting medications, Apretude and Cabenuva. The combined revenues from these four drugs contributed more than 60% to total HIV sales during the quarter.
Sales of Dovato rose 19%, while those of J&J-partnered Juluca increased 1%. Since their commercial launch, both these medications have been eroding the sales and market share of the company’s three-drug regimens — Triumeq and Tivicay. While Triumeq sales declined 20%, sales of Tivicay fell 10% during the quarter.
Sales of Apretude and Cabenuva rose 63% and 38%, respectively.
Sales of the respiratory drug Nucala were up 21% during the quarter, driven by strong performance across all marketed regions.
Sales of the immuno-inflammation drug Benlysta were up 39% in the quarter, reflecting strong product demand across all regions.
Oncology sales rose 53%, driven by increasing patient demand for Jemperli and Ojjaara. Jemperli added £174 million to GSK’s first-quarter top line compared with £149 million in fourth-quarter 2024, driven by new patient starts across all regions.
New blood cancer drug Ojjaara/Omjjara generated £112 million in product sales compared with £118 million in fourth-quarter 2024. While the drug was approved by the FDA in September 2023, it received approval in the EU in January 2024.
Zejula sales fell 5% in the quarter. Though the drug’s U.S. sales were adversely impacted due to favorable price impacts in the year-ago period, continued growth in ex-U.S. territories partially offset the same.
GSK did not record any sales of Vir Biotechnology (VIR - Free Report) -partnered Xevudy during the quarter.
Sales Performance of GSK’s General Medicines
This segment was primarily driven by solid sales growth of asthma inhaler Trelegy Ellipta across all regions. This was offset by decreases in Seretide/Advair, other respiratory and other General Medicine products.
Sales of Trelegy Ellipta, Ventolin and Anoro Ellipta rose 15%, 12% and 9%, respectively. While Advair/Seretide sales declined 21%, sales of Flixotide/Flovent fell 27%. Revlar/Breo Ellipta sales remained flat.
GSK’s Vaccine Sales Decline
The decline was primarily due to lower sales of its RSV vaccine, Arexvy. The figure dropped 57% during the quarter. This downtick can be attributed to the restrictive recommendation issued by the U.S. CDC last year for individuals in the 60-74 age bracket.
Sales of the company’s shingles vaccine, Shingrix, fell 7% during the quarter due to lower demand in the U.S. and International markets. This was partially offset by rising sales in Europe.
In Meningitis vaccines, sales of Bexsero rose 20%, while Menveo sales were up 13%. Sales of the influenza vaccine, Fluarix, declined 92%. Sales of Established vaccines were down 3%.
During the quarter, GSK did not record any sales from the COVID-19 booster vaccine, which was co-developed with Sanofi (SNY - Free Report) .
Operating Expenses
Core selling, general and administration costs rose 8% to £2.06 billion. This was due to continued investments by GSK for launching new products and supporting the global market expansion of its existing marketed drugs.
Core research and development expenses rose 2% to £1.38 billion, attributed to the company’s continued investment in pipeline advancement.
GSK’s 2025 Guidance
The company reiterated its financial guidance for 2025. It expects sales to increase 3-5% during the year.
GSK expects sales of specialty medicines to increase by a low double-digit percentage at CER in 2025, while sales in the General Medicines segment are expected to be broadly stable at CER. However, the company expects vaccine sales to witness a low single-digit decline. GSK does not expect any further COVID-19-related sales in 2025.
The company expects both core operating profit and core EPS to grow in the range of 6-8%.
Our Take on GSK’s Results
GSK reported mixed first-quarter results, as its earnings beat estimates but revenues missed the mark. While sales in the Specialty Medicines franchise continued to drive the company’s sales, the top-line miss was largely due to the soft sales performance of the Vaccine and General Medicines segment.
Despite the mixed results, shares of GSK rose nearly 3% in pre-market trading today. This optimism was backed by the company maintaining its financial guidance despite potential headwinds from proposed pharmaceutical tariffs. Alongside its earnings results, GSK noted it is "well positioned to respond" to the potential financial impact of Trump’s tariffs. The company also reiterated its outlook for 2031, expecting to generate sales of more than £40 billion.
The stock has gained 15% year to date against the industry’s 4% decline.
Image Source: Zacks Investment Research
To support its long-term targets, GSK has prioritized focus on HIV, immunology/respiratory and oncology therapeutic areas. It has 70 assets in clinical development, which include 18 candidates that are either in late-stage development or under regulatory review.
This year, GSK expects to launch five new products/line extensions. The FDA has already approved two products during the first quarter of 2025 — Blujepa (for uncomplicated urinary tract infection) and Penmenvy (the 5-in-1 meningococcal vaccine). Regulatory decisions on the remaining three — Blenrep (relaunch in multiple myeloma), depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) and Nucala (for COPD) — are pending. A decision on Nucala is expected by May 7, while the other two are anticipated in the second half of the year.
Image: Bigstock
GSK Q1 Earnings Beat, Sales Lag, Stock Gains on Tariff Reassurance
GSK plc (GSK - Free Report) reported first-quarter 2025 core earnings of $1.13 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.08. Core earnings rose 4% year over year on a reported basis and 5% at a constant exchange rate (CER), driven by favorable product mix, higher royalty revenues and lower net finance costs during the quarter.
Quarterly revenues rose 2% on a reported basis and 4% at CER to $9.46 billion (£7.52 billion), driven by the rising sales of its HIV and oncology products, partially offset by the declining vaccine sales. However, the top line missed the Zacks Consensus Estimate of $9.54 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
All growth rates mentioned below are on a year-over-year basis and at CER.
GSK’s Segmental Discussion
GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines rose 17%, General Medicines sales remained stable. Sales in the Vaccine franchise declined 6%.
GSK’s Specialty Medicines Drives Top Line
HIV sales rose 7% during the quarter, driven by an increase in patient demand for the company’s two-drug regimens — Dovato and J&J (JNJ - Free Report) -partnered Juluca — and long-acting medications, Apretude and Cabenuva. The combined revenues from these four drugs contributed more than 60% to total HIV sales during the quarter.
Sales of Dovato rose 19%, while those of J&J-partnered Juluca increased 1%. Since their commercial launch, both these medications have been eroding the sales and market share of the company’s three-drug regimens — Triumeq and Tivicay. While Triumeq sales declined 20%, sales of Tivicay fell 10% during the quarter.
Sales of Apretude and Cabenuva rose 63% and 38%, respectively.
Sales of the respiratory drug Nucala were up 21% during the quarter, driven by strong performance across all marketed regions.
Sales of the immuno-inflammation drug Benlysta were up 39% in the quarter, reflecting strong product demand across all regions.
Oncology sales rose 53%, driven by increasing patient demand for Jemperli and Ojjaara. Jemperli added £174 million to GSK’s first-quarter top line compared with £149 million in fourth-quarter 2024, driven by new patient starts across all regions.
New blood cancer drug Ojjaara/Omjjara generated £112 million in product sales compared with £118 million in fourth-quarter 2024. While the drug was approved by the FDA in September 2023, it received approval in the EU in January 2024.
Zejula sales fell 5% in the quarter. Though the drug’s U.S. sales were adversely impacted due to favorable price impacts in the year-ago period, continued growth in ex-U.S. territories partially offset the same.
GSK did not record any sales of Vir Biotechnology (VIR - Free Report) -partnered Xevudy during the quarter.
Sales Performance of GSK’s General Medicines
This segment was primarily driven by solid sales growth of asthma inhaler Trelegy Ellipta across all regions. This was offset by decreases in Seretide/Advair, other respiratory and other General Medicine products.
Sales of Trelegy Ellipta, Ventolin and Anoro Ellipta rose 15%, 12% and 9%, respectively. While Advair/Seretide sales declined 21%, sales of Flixotide/Flovent fell 27%. Revlar/Breo Ellipta sales remained flat.
GSK’s Vaccine Sales Decline
The decline was primarily due to lower sales of its RSV vaccine, Arexvy. The figure dropped 57% during the quarter. This downtick can be attributed to the restrictive recommendation issued by the U.S. CDC last year for individuals in the 60-74 age bracket.
Sales of the company’s shingles vaccine, Shingrix, fell 7% during the quarter due to lower demand in the U.S. and International markets. This was partially offset by rising sales in Europe.
In Meningitis vaccines, sales of Bexsero rose 20%, while Menveo sales were up 13%. Sales of the influenza vaccine, Fluarix, declined 92%. Sales of Established vaccines were down 3%.
During the quarter, GSK did not record any sales from the COVID-19 booster vaccine, which was co-developed with Sanofi (SNY - Free Report) .
Operating Expenses
Core selling, general and administration costs rose 8% to £2.06 billion. This was due to continued investments by GSK for launching new products and supporting the global market expansion of its existing marketed drugs.
Core research and development expenses rose 2% to £1.38 billion, attributed to the company’s continued investment in pipeline advancement.
GSK’s 2025 Guidance
The company reiterated its financial guidance for 2025. It expects sales to increase 3-5% during the year.
GSK expects sales of specialty medicines to increase by a low double-digit percentage at CER in 2025, while sales in the General Medicines segment are expected to be broadly stable at CER. However, the company expects vaccine sales to witness a low single-digit decline. GSK does not expect any further COVID-19-related sales in 2025.
The company expects both core operating profit and core EPS to grow in the range of 6-8%.
Our Take on GSK’s Results
GSK reported mixed first-quarter results, as its earnings beat estimates but revenues missed the mark. While sales in the Specialty Medicines franchise continued to drive the company’s sales, the top-line miss was largely due to the soft sales performance of the Vaccine and General Medicines segment.
Despite the mixed results, shares of GSK rose nearly 3% in pre-market trading today. This optimism was backed by the company maintaining its financial guidance despite potential headwinds from proposed pharmaceutical tariffs. Alongside its earnings results, GSK noted it is "well positioned to respond" to the potential financial impact of Trump’s tariffs. The company also reiterated its outlook for 2031, expecting to generate sales of more than £40 billion.
The stock has gained 15% year to date against the industry’s 4% decline.
Image Source: Zacks Investment Research
To support its long-term targets, GSK has prioritized focus on HIV, immunology/respiratory and oncology therapeutic areas. It has 70 assets in clinical development, which include 18 candidates that are either in late-stage development or under regulatory review.
This year, GSK expects to launch five new products/line extensions. The FDA has already approved two products during the first quarter of 2025 — Blujepa (for uncomplicated urinary tract infection) and Penmenvy (the 5-in-1 meningococcal vaccine). Regulatory decisions on the remaining three — Blenrep (relaunch in multiple myeloma), depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) and Nucala (for COPD) — are pending. A decision on Nucala is expected by May 7, while the other two are anticipated in the second half of the year.
GSK PLC Sponsored ADR Price
GSK PLC Sponsored ADR price | GSK PLC Sponsored ADR Quote
GSK’s Zacks Rank
GSK currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.