Core Viewpoint - GSK reported mixed first-quarter results for 2025, with core earnings exceeding estimates but revenues falling short, primarily due to weak performance in the Vaccine and General Medicines segments [15]. Financial Performance - Core earnings for Q1 2025 were $1.13 per ADS, beating the Zacks Consensus Estimate of $1.08, reflecting a 4% year-over-year increase on a reported basis and a 5% increase at constant exchange rates (CER) [1]. - Quarterly revenues rose 2% on a reported basis and 4% at CER to $9.46 billion (£7.52 billion), although this missed the Zacks Consensus Estimate of $9.54 billion [2]. Segment Analysis - GSK operates under three segments: General Medicines, Specialty Medicines, and Vaccines. Specialty Medicines sales increased by 17%, while General Medicines remained stable, and Vaccine sales declined by 6% [3]. - Specialty Medicines drove revenue growth, with HIV sales up 7% and oncology sales up 53% [4][6]. Product Performance - Sales of Dovato rose 19%, while J&J-partnered Juluca increased by 1%. In contrast, sales of Triumeq and Tivicay fell by 20% and 10%, respectively [5]. - The respiratory drug Nucala saw a 21% increase in sales, and Benlysta, an immuno-inflammation drug, rose by 39% [6]. - The new blood cancer drug Ojjaara generated £112 million in sales, while Zejula sales fell by 5% [7]. Vaccine Sales - Vaccine sales declined primarily due to a 57% drop in sales of the RSV vaccine, Arexvy, and a 7% decrease in sales of the shingles vaccine, Shingrix [10]. - Sales of the influenza vaccine, Fluarix, declined by 92%, while Bexsero and Menveo saw increases of 20% and 13%, respectively [11]. Operating Expenses - Core selling, general, and administration costs rose by 8% to £2.06 billion, driven by investments in new product launches and market expansion [12]. - Core research and development expenses increased by 2% to £1.38 billion, reflecting ongoing investment in pipeline advancement [12]. Future Guidance - GSK reiterated its 2025 financial guidance, expecting sales to increase by 3-5%, with specialty medicines projected to grow by a low double-digit percentage at CER [13]. - The company anticipates a low single-digit decline in vaccine sales and does not expect further COVID-19-related sales in 2025 [13]. Market Position - Despite mixed results, GSK's shares rose nearly 3% in pre-market trading, supported by the company maintaining its financial guidance amid potential pharmaceutical tariff headwinds [16]. - GSK has gained 15% year-to-date, outperforming the industry, which has seen a 4% decline [17]. Strategic Focus - GSK is prioritizing HIV, immunology/respiratory, and oncology therapeutic areas, with 70 assets in clinical development, including 18 candidates in late-stage development or under regulatory review [19]. - The company expects to launch five new products/line extensions in 2025, with two already approved in Q1 2025 [20].
GSK Q1 Earnings Beat, Sales Lag, Stock Gains on Tariff Reassurance