GSK plc Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Group sales up 6% for the quarter, core operating profit up 12%, core earnings per share grew 15% to 46.5p. Cash generation positive with GBP 3.7 billion generated in the first half.
• R&D progress: 3 FDA approvals in 2025, 14 scale opportunities with peak-year sales >GBP 2 billion, BD momentum with 4 assets to late-stage development this year.
• Portfolio launches: Blenrep FDA review extended to Oct 2025, Nucala approved for COPD, Penmenvy and Blujepa launches upcoming.
• Supply chain: Significant investment in US manufacturing, with overall planned investments in the US in tens of billions over next 5 years.

Segment Performance

• Specialty Medicines: Sales up 15% for the quarter, accounts for around 40% of current sales and expected to be well over 50% by 2031.
• Vaccines: Sales up 9% in Q2, driven by strong demand in Europe for Shingrix and meningitis vaccines; Shingrix sales grew 6% globally with 72% from outside the US; meningitis portfolio up 22%; Arexvy up 13%.
• HIV: Portfolio grew 12% in Q2, driven by strong patient demand for long-acting injectables and Dovato.
• General Medicines: Down 6% as expected, due to tough comparators for Trelegy in Q2 2024.

Guidance

• Expect to be towards the top end of the financial guidance given for 2025.
• Adjusted full-year guidance for Specialty, HIV, and Vaccines upwards.
• R&D to grow ahead of sales, SG&A to grow low single-digit percentage, net interest expense lower than previously guided at GBP 550 million to GBP 600 million.

Risks

• FDA review delay for Blenrep, with new target action date of Oct 23, 2025.
• Impact of Medicare Part D redesign on portfolio performance.
• Tariffs and supply chain optimization charges affecting gross margin.

Question and Answer Q: Clarification on camlipixant timeline and Blenrep's impact on outlook.

A: Emma and Tony respond that camlipixant CALM-2 trial ongoing, on track for mid-2026 readout; Blenrep ramp unchanged, confident in outlook with ongoing BD.

Q: Blujepa launch timeline and R&D expense drivers.

A: Luke and Julie discuss Blujepa launch delayed due to formulary timing, R&D expenses driven by ADC portfolio acceleration and 4 pivotal trials starting in second half.