GSK shares rise as FTSE 100 giant ‘well positioned’ for pharma tariffs
British drugmaker GSK insisted it was “well positioned” to respond to the impact of sector-specific tariffs amid widespread speculation President Donald Trump is set to target pharmaceutical imports with his tariff agenda.
Trump voiced his desire to slap tariffs on pharma products in the “not too distant future”.
He previously said: “We don’t make our own drugs, our own pharmaceuticals — we don’t make our own drugs any more […] all I have to do is impose a tariff.”
But the FTSE 100 giant appeared prepared for the battle on Wednesday after reaffirming its 2025 forecasts.
Shares in the drugmaker jumped nearly two per cent in early trading on Wednesday.
GSK said it expects 2025 turnover growth of three to five per cent and core operating profit growth of six to eight per cent. Earnings per share were expected to grow six to eight per cent.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “GSK has set a strong precedent for delivering earnings upgrades, but in the context of tariff uncertainty, drug pricing reviews and weak demand for some of its vaccines, in-line is just fine.”
He added: “Looking further ahead it’s outlined 14 opportunities that it expects to launch over the next six years, each with annual sales potential of £2bn or more.
“These come with the usual clinical and commercial risks, but it gives GSK a solid chance of eclipsing its longer-term sales target of £40bn by 2031.”
GSK beats analyst expectations amidst tariff threat
The drugmaker pocketed a a first-quarter turnover of £7.52bn and core profit of 44.9p per share, which surpassed analyst expectations.
Sales in speciality medicines were up 17 per cent to £2.9bn, boosted by a 28 per cent surge in respiratory, immunology and inflammation.
Meanwhile, vaccine sales fell six per cent, after a 57 per cent drop in arexvy outweighed a 20 per cent jump in meningitis vaccines.
The firm declared a dividend of 16p for the first three months of 2025, with 64 expected for the full year.
It also provided an update on its £2bn share buyback program, which commenced at the beginning of the year, saying it had bought back £273m shares.
GSK lifted its long-term sales target to over £40bn by 2031 in February, but trading uncertainties with the US may be set to derail the drugmaker’s goal.
Emma Walmsley, chief executive officer at GSK, said: “GSK continues to make strong progress, demonstrating the quality, strength and resilience of our portfolio.
She added: “This momentum, 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.”