GSK plc Q3 FY2025 earnings call

Key Points

• GSK's Q3 results show continued strong performance with sales up 8%, core operating profit up 11%, and core EPS up 14% to 55p.
• R&D progress: 4 FDA approvals in 2025, including BLENREP last week, and 15 scale opportunities with peak sales potential >GBP 2 billion by 2031.
• Supply chain optimization: Intention to invest $30 billion in US R&D and advanced manufacturing over 5 years.
• Upgraded guidance: Full year sales expectations raised to 6%-7%, operating profit 9%-11%, and EPS 10%-12%.

In Q3, GSK's total sales were GBP 8.5 billion, up 8%. Specialty Medicines was the key driver, with 16% growth. RI&I sales were up 15%, oncology up 39%, and HIV up 12%. Vaccines sales were GBP 2.7 billion, up 2%, driven by Shingrix, Arexvy, and Bexsero. General Medicines sales were up 4%, led by Trelegy. Specialty Medicines contributed significantly, with HIV, oncology, and RI&I showing strong growth.

Guidance

• Raised full year sales expectations from 3%-5% to 6%-7%.
• Upgraded operating profit guidance to 9%-11% and EPS to 10%-12%.
• R&D continues to increase ahead of sales with reinvestment of incremental royalty income.
• Tax rate expected to be around 17.5%.

Q: Peter Verdult on BLENREP and R&D gaps A: Emma and Julie discuss that oncology, respiratory, immunology, and inflammation are key areas where data readouts and commercial execution will make a difference, including BLENREP, Jemperli's rectal readout, and ADCs from Hansoh.

Q: Matthew Weston on Shingrix and OpEx A: Luke mentions Shingrix ex-U.S. has consistent rollout potential, and Julie highlights continued SG&A leverage with R&D reinvestment and focus on depemokimab, Nucala COPD, and BLENREP launches.