GSK shares come under pressure from weaker vaccine sales

GSK's shares fell 4% despite Q3 sales and profit beats, as investors focused on pipeline concerns and weak vaccine sales, including Shingrix. CEO Luke Miels emphasized long-term strategy and R&D focus. Specialty medicine sales rose 15%, but new asthma drug and vaccine revenue missed expectations. GSK maintained annual outlook but expects R&D spending to outpace sales growth. The company is restructuring to fund new medicines, with a £328 million restructuring charge in Q3.

GSK's head of oncology research, Hesham Abdullah, told the WSJ the company aims to nearly double its cancer drug pipeline by 2027, targeting 19-20 late-stage studies. This push is part of CEO Luke Miels' strategy to address patent expirations for HIV drugs. GSK's oncology segment generated £1.08 billion in H1 2026.

GSK reported Q3 sales of £8.9B, in line with estimates, but vaccine sales fell to £2.6B, missing expectations. Specialty medicines saw 15% growth. Analysts note challenges in sustainable growth due to flat vaccines and general medicines businesses. Arexvy and Shingrix underperformed. Blenrep met expectations, while Exdensur fell short.

GSK shares fell 5.5% on Oct 28 despite a 5% revenue increase to £8.9B. Profit declined 19% due to weaker vaccine sales, restructuring costs, and outlook concerns. Vaccine sales dropped 2%, with Shingrix down 5% and Arexvy down 24%. Restructuring costs total £2.4B, with £318M in Q3. GSK confirmed its annual forecast and aims for £40B+ revenue by 2031.

GSK reported Q3 adjusted earnings of $1.45 per share on $11.83 billion in sales, beating analyst estimates. However, vaccine sales declined, dragging on the topline beat, and the stock fell. In the same period last year, earnings were $1.46 per share on $11.32 billion in sales.

GSK shares fell 5.5% despite better-than-expected earnings, due to weaker vaccine sales, restructuring costs, and a cautious outlook. The company reported a 19% decline in pre-tax profit to £1.9bn and £318m in restructuring charges. Sales rose 5% to £8.9bn, driven by HIV, cancer, and lupus drugs, but vaccine sales dipped 2%. GSK aims to generate £40bn in annual revenue by 2031 and is implementing a cost-saving plan to save £1.9bn annually.