GSK shares fell as much as 7% on Wednesday after the drugmaker reported a 19% drop in pre-tax profit to £1.9bn for the July to September quarter. While turnover rose 5% to £8.9bn, investors reacted to weaker vaccine sales, restructuring charges, and the eventual loss of patent protection for a major HIV drug. Total earnings per share fell 21% to 38.5p, though core earnings per share rose 1% to 54.6p.
Vaccine sales dip as specialty medicines grow
Turnover for GSK’s vaccine business fell 2% to £2.6bn, according to company data. The decline was driven by a 24% drop in sales for the RSV vaccine Arexvy and a 5% dip for the shingles shot Shingrix. In contrast, meningitis vaccines saw a 12% increase in sales.
Growth was powered by specialty medicines, which grew 15% to £3.9bn. This includes a 10% rise in HIV sales to £2.1bn—with long-acting injectables accounting for 80% of that growth—and a 23% climb in oncology sales to £622m. Sales for immunology, inflammation and respiratory medicines jumped 21% to £1.1bn.
Did you know? GSK is targeting more than £40bn in total annual revenue by 2031 as part of its strategy to rebuild its cancer business.
Restructuring costs and workforce reductions
The company is implementing a cost-saving programme called “Accelerate Growth,” which targets £1.9bn in annual savings by 2029.
CEO Luke Miels stated that the restructuring impact in the UK was “relatively limited”. However, the company is reorganising its vaccine operations in Belgium, where the use of automation and digital tools is expected to result in approximately 1,200 job losses. Miels noted some support role cuts at the central London headquarters, adding, “You never want headquarters to be too big; I want people on the bench in the lab.”
| Metric | Q3 Value | Change/Detail |
|---|---|---|
| Turnover | £8.9bn | +5% (constant currency) |
| Pre-tax Profit | £1.9bn | -19% |
| Net Debt | £20.7bn | Up from £14.5bn (end of 2025) |
Patent cliffs and the future of Shingrix
Investors are monitoring the “patent cliff” for dolutegravir, GSK’s blockbuster HIV medication. The drug will lose patent protection toward the end of the decade, allowing competitors to produce cheaper generic versions.
To offset these risks, Miels described Shingrix as a “remarkable product” with potential for growth next year. He noted two large studies assessing the vaccine’s effect on cardiovascular events and dementia risk, with data expected in 2027 and 2029 respectively. Miels stated that these studies could be “transformative” for the product. He said the company is “trying to demonstrate causation” following reports of a correlation between the vaccine and reduced dementia risk, particularly in women.
Company maintains annual sales forecasts
Despite the profit dip, GSK maintained its annual forecasts. The company expects 2026 sales growth between 3% and 5% and core operating profit growth of 7% to 9%.
The company plans to begin 22 late-stage studies for new medications by the end of the year. Recent milestones include US approval for Jemperli for rectal cancer and Hibsago for chronic hepatitis B. Of the 22 studies, 18 are already under way, focusing on vaccines and specialty medicines.
Why did the share price fall
Why did the share price fall if turnover grew?
What is the total cost of the “Accelerate Growth” programme?
The company estimates the total restructuring cost at £2.4bn, with the goal of saving £1.9bn annually by 2029.
Net debt for the company climbed to £20.7bn, up from £14.5bn at the end of 2025, following the $10.8bn takeover of Nuvalent. The third-quarter dividend was 17p per share, an increase from 16p last year.
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