GSK Revenue Exceeds Market Expectations
GSK reported second-quarter turnover of £8.41 billion, beating the average analyst forecast of £8.24 billion. Strong demand for the company’s Specialty Medicines and Vaccines supported the better-than-expected performance.
The British pharmaceutical group also announced a major three-year cost-reduction programme called “Accelerate Growth.”
GSK Targets £1.9 Billion in Annual Savings
Under the new restructuring plan, GSK aims to generate £1.9 billion in annual savings by 2029.
The programme is expected to cost approximately £2.4 billion, including around £2.1 billion in cash expenses. Most of these costs are expected to be recorded during 2026 and 2027.
GSK plans to use the savings to increase investment in its late-stage drug pipeline and protect profit margins in the coming years.
The company is preparing for the loss of patent protection on its HIV treatment dolutegravir, which is expected between 2028 and 2030.
Clinical Trial Pipeline Set to Expand
GSK now expects to begin more than 20 late-stage clinical trials in 2026, compared with its previous target of 10.
The company has identified seven medicines across 18 different conditions that it believes could improve existing treatments.
These potential therapies cover several important areas, including:
- Cancer
- Respiratory disease
- Liver disease
- Vaccines
The increased number of trials highlights GSK’s effort to strengthen its future product portfolio before key patents expire.
Profit and Earnings Beat Analyst Forecasts
GSK’s core operating profit reached £2.80 billion, exceeding the market consensus of £2.68 billion.
Core profit before tax came in at £2.68 billion, above analysts’ average estimate of £2.52 billion.
Meanwhile, core earnings per share rose to 50.5 pence, beating the consensus forecast of 47.1 pence.
The company also declared a second-quarter dividend of 17 pence per share, matching market expectations.
Specialty Medicines Deliver Strong Growth
Specialty Medicines sales increased by 14% to £3.8 billion.
Within the division, Oncology revenue climbed by 17%, while HIV medicine sales grew by 10%.
The strong results from these higher-growth businesses helped offset weaker performance in GSK’s General Medicines division.
Vaccines Revenue Rises
Vaccines sales increased by 8% to £2.3 billion during the quarter.
Sales of the shingles vaccine Shingrix rose by 3% to £0.9 billion. Meningitis vaccine revenue more than doubled, reaching approximately £0.2 billion.
However, General Medicines sales declined by 9% to £2.3 billion. Revenue from the respiratory treatment Trelegy fell by 7% to £0.8 billion.
Cancer Drug Trial Produces Positive Results
GSK also reported positive results from a late-stage trial in China involving its cancer drug risvutatug rezetecan, also known as Ris-Rez.
The treatment successfully slowed disease progression in patients with osteosarcoma, a rare form of bone cancer, whose disease had returned following previous treatment.
The study was conducted by GSK’s partner, Hansoh Pharma.
The result follows an earlier successful late-stage trial involving advanced lung cancer. According to GSK, Ris-Rez is the only drug in its category to achieve positive late-stage results across more than one type of cancer.
GSK Plans New Cambridge Research Centre
Separately, GSK announced plans to establish a new 300,000-square-foot research and development centre at the Cambridge Biomedical Campus in the UK.
The facility will accommodate more than 1,000 GSK scientists working in areas including Oncology, Respiratory Medicine, Hepatology, Vaccines and HIV.
GSK plans to invest £400 million over three years in the project.
As part of the move, the company will gradually leave its research site in Stevenage, Hertfordshire. Employees are expected to relocate in phases by 2029.
GSK will also upgrade its existing laboratory facilities in Ware, Hertfordshire.
Chief Executive Luke Miels said the investment would accelerate research, support the development of competitive new products and strengthen GSK’s position within the UK’s life sciences industry.
GSK Reaffirms Full-Year Guidance
GSK maintained its full-year 2026 outlook and continues to expect turnover growth of between 3% and 5%.
The company said it now expects growth to come in toward the upper half of that range.
