GSK plc Q4 FY2025 earnings call

Management Statement and Operational Highlights

• 2025 Results: Sales up 7% to over GBP 32 billion, core operating profit up 11%, EPS up 12%, cash generation GBP 8.9 billion. Had 5 FDA approvals and 7 new pivotal trial starts in R&D, and maintained responsible business standards.
• 2026 Focus Areas: Drive top line growth via launch products like Blenrep and Exdensur; accelerate late-stage and early-stage portfolio assets; execute business development (e.g., acquired food allergy IgE antibody Ozekibart). Focus on simplifying operations, leveraging AI/technology, and executive team changes.
• Pipeline Progress: In 2025, secured 5 FDA regulatory approvals and started 7 new pivotal trials. Exdensur approved for severe eosinophilic asthma, Bepirovirsen shows potential for chronic hepatitis B, oncology pipeline includes BLENREP, Ojjaara, etc., and acquired Rapp Therapeutics for food allergy asset.

Segment Performance

• Respiratory Immunology and Inflammation: Full year sales up 18%, driven by Benlysta (up 22%) and Nucala (up 15%, 10th consecutive year of double-digit growth).
• Oncology: Sales up 43%, with Jemperli up 89%, Ojjaara up 60%, ZEJULA sales decreased due to FDA labeling restrictions, and BLENREP approved in 15 markets globally.
• HIV: Sales growth 11% in 2025, powered by long-acting injectables and Dovato; Cabenuva grew 42%, Aplitude grew 62%.
• Vaccines: Sales GBP 9.2 billion, up 2%, with Shingrix up 8%, Bexero up 16%, and Arexvy up 2%.
• GenMed: Sales slightly down, with TRELEGY strong, and anti-infectives like BLUJEPA and tebipenem in the U.S. having progress.

Guidance

• 2026 Outlook: Expect sales growth 3%-5%, core operating profit and EPS growth 7%-9%, dividend 70p (6% increase). Specialty growth low double-digit, HIV mid-to-high single-digit, Vaccines and GenMed low single-digit decline to stable. Gross margin benefits from supply chain efficiencies, SG&A growth low single-digit, R&D grows ahead of sales. Phasing of operating profit growth weighted to second half, currency could be a headwind.

Risks

• Regulatory and Market Risks: FDA labeling restrictions affecting ZEJULA sales. Competition in HIV and respiratory markets. Impact of dolutegravir loss of exclusivity on HIV business.

Question and Answer

• Q: Elaborate on COPD and asthma R&D and commercial strategy, HIV 6-monthly treatment and PrEP Phase III, and GBP 40 billion target A: Tony Wood discussed COPD and asthma strategy with multiple long-acting mechanisms. Deborah Waterhouse talked about HIV 6-monthly treatment timeline and market opportunity. Julie Brown confirmed GBP 40 billion target includes ongoing BD and acquisitions.
• Q: Update on Blenrep launch trajectory, R&D staff reduction, Exdensur launch curve A: Nina Mojas provided Blenrep launch progress, R&D staff reduction is part of dynamic resource allocation. Nina discussed Exdensur launch focusing on bio-naive patients and 6-monthly dosing appeal.
• Q: Blenrep REMS certification, HIV event midyear financials, simplification/cost savings, R&D acceleration A: Nina Mojas mentioned REMS certification progress, Deborah Waterhouse outlined HIV event midyear details, Luke Miels discussed simplification and R&D acceleration focus areas.
• Q: Camlipixant trial purpose, Shingrix Q4 sales and 2026 confidence A: Tony Wood talked about Camlipixant trial pooled analysis purpose. Julie Brown provided Shingrix Q4 sales and positive trends in 2026