GSK Forecasts Slower Sales Growth for 2026

Key Highlights

GSK has projected a slowdown in sales growth for 2026 as the company prepares for upcoming patent expiries on its leading HIV drugs. In an outlook presented by new CEO Luke Miels, the British pharmaceutical giant is focusing on expanding its drug pipeline to navigate the transition and secure future revenue streams. Despite the moderated short-term forecast, the company's shares saw a 1.4% rise after an initial dip.

Company Outlook and Performance

For the current year, GSK anticipates revenue to grow between 3% and 5% at constant currency rates. This follows a 7% increase in 2025, which brought total revenue to £32.67 billion, surpassing expectations. While the company's vaccines and general medicines units are expected to see a slight decline or remain stable in 2026, its specialty medicines business is projected to report low-double-digit growth. The company maintains a long-term sales target of over £40 billion by 2031.

Market Impact and Strategy

Investors are closely monitoring GSK's strategic moves under its new leadership, especially as patent protections for its key HIV drugs begin to expire in 2028. To bolster its pipeline, GSK has been active in acquisitions, including a $2.2 billion offer for RAPT Therapeutics. The company’s recent Q4 results beat expectations, with core earnings per share at 25.5 pence and an 8% rise in sales to £8.62 billion, signaling operational strength amidst strategic shifts.

Summary and Future Outlook

GSK's forecast reflects a strategic pivot towards long-term growth by investing in research and new drug launches. While facing the challenge of patent expiries, the company's strong Q4 performance and proactive pipeline development provide a foundation for its future targets. Market sentiment will likely depend on the successful execution of this strategy and the performance of newly launched treatments.

FAQ

Q: Why is GSK's sales growth expected to slow in 2026?
A: The slowdown is anticipated as GSK prepares for the patent expiry of its top-selling HIV drugs starting in 2028, prompting a strategic focus on developing new revenue sources.

Q: What is GSK's long-term sales target?
A: The company aims to achieve annual sales of more than 40 billion pounds by the year 2031.

Source: Investing.com