Drugmaker GSK has reaffirmed its outlook for 2025, stating that it is well-prepared to handle potential tariffs on pharmaceutical imports. The company’s first-quarter results exceeded expectations, contributing to a 1.5% rise in its stock price, which reached 14.5 pounds by 0731 GMT.
Global companies are adjusting to tariffs proposed by U.S. President Donald Trump, especially the threat of a major tariff on pharmaceutical imports. According to reports, such tariffs could disrupt global supply chains and increase U.S. drug costs by $51 billion annually. GSK has identified potential strategies within its supply chain and productivity initiatives to lessen the impact of these tariffs but has not disclosed specifics.
GSK’s CEO, Emma Walmsley, has focused on expanding the company’s portfolio, particularly in infectious diseases, to offset slowing sales from its top-selling drugs and vaccines. The company is also preparing for upcoming patent expirations on its HIV treatments.
Walmsley expressed confidence in GSK’s long-term outlook, stating, “The momentum in the company’s portfolio, together with the strength of our portfolio and proven ability to drive operating leverage, underpin our confidence in guidance for the year and our longer-term outlooks.”
For the first quarter, GSK reported a turnover of 7.52 billion pounds ($10.07 billion) and core profit of 44.9 pence per share, surpassing analyst expectations of 7.42 billion pounds and 40.9 pence per share.
However, the company’s vaccine sales fell by 6%, totaling 2.1 billion pounds. Its newer RSV vaccine, Arexvy, brought in just 0.1 billion pounds, a 57% decline. Initially, GSK had hoped Arexvy would become a blockbuster product, with peak annual sales projected at 3 billion pounds. However, sales have consistently fallen short of market expectations in recent quarters.
Despite these challenges, GSK has raised its long-term sales target to over 40 billion pounds by 2031. However, uncertainty surrounding U.S. pharmaceutical import tariffs and policies on vaccines and HIV prevention continues to pose challenges.
Looking ahead to 2025, GSK expects turnover to grow by 3-5% and core earnings per share to increase by 6-8%.
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