GSK profits lifted by strong cancer drug sales
The FTSE 100 company posted total second quarter sales of almost £8 billion, up 6 per cent at constant currencies and ahead of City forecasts of £7.8 billion.
Specialty medicines rose 15 per cent to £3.3 billion, including cancer treatments up 42 per cent and HIV drug sales 12 per cent. Core operating profit rose 12 per cent to £2.6 billion in the quarter.
• Business live: FTSE 100 drops on poor corporate results
The performance led GSK to forecast revenue growth this year towards the top end of its previously-guided range of between 3 and 5 per cent. Similarly it expects core operating profit growth to be towards the top of its 6 to 8 per cent range.
GSK said that its guidance reflected tariffs already enacted and the US-EU trade deal struck this week, adding that it was 'positioned to respond to the potential financial impact of tariffs, with mitigation options identified. Given the uncertain external environment, we will continue to monitor developments'.
On Monday, President Trump reiterated threats to introduce tariffs on pharmaceutical imports soon as he seeks to pressure multinationals to increase manufacturing in the United States.
Dame Emma Walmsley, GSK's group chief executive, said that the 'strong momentum in 2025 continues with another quarter of excellent performance driven mainly by specialty medicines, our largest business'.
She added: 'We also continue to make very good progress in R&D, with three major FDA approvals achieved so far this year, 16 assets now in late-stage development, and four more promising medicines to treat cancer, liver disease and HIV expected to enter phase III and pivotal development by the end of the year.'
A dividend of 16p per share was declared and GSK has spent £822 million on its £2 billion share buyback, which was announced at its full-year results earlier this year.
Shares in GSK slid 8p, or 0.5 per cent, to £13.89 in early trading in London.
Walmsley, 56, who has led GSK since 2017, said that the company remained confident in its its long-term outlook.
GSK has set a target of generating group sales of more than £40 billion by 2031. However, there remains scepticism among some investors that it will hit that figure, with consensus forecasts instead of just £34 billion.
It suffered a setback this month when the Food and Drug Administration, the regulator in America, the world's biggest drugs market, delayed a decision on approving Blenrep, a potential blockbuster blood cancer drug. The European Union, however, approved Blenrep for the treatment of adults with relapsed or refractory multiple myeloma. The UK has also given the green light.
GSK, based in London's 'Knowledge Quarter', is one of Britain's two big pharma companies alongside AstraZeneca. It employs more than 65,000 people and operates in 75 markets.
The group separated Haleon, its consumer healthcare business, as a standalone FTSE 100 company three years ago to focus on developing its core biopharma pipeline and to give it more firepower for bolt-on deals.
On Monday it struck a $500 million deal with Hengrui Pharma, a Chinese pharmaceutical company, to develop up to a dozen new medicines as it deepens its partnerships in the country.
GSK said on Wednesday that its agreement in May to pay up to $2 billion for a promising liver disease drug, the lead asset of Boston Pharmaceuticals, a US biopharma company, had been completed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
13 minutes ago
- The Independent
Interest rates live: Rate cut expected by Bank of England despite inflation and Trump tariffs
The Bank of England (BoE) is expected to cut interest rates today down to 4 per cent, despite concerns over still-high inflation and Trump tariffs coming into force. The move would mark a third cut overall this year, and the fifth since the interest rates peaked at 5.25 per cent in August 2024. Members on the Monetary Policy Committee (MPC) are likely to be divided on whether to cut the rate, with divisions over both holding until later in the year - to combat the rate of inflation - and giving a double cut now, which could boost business productivity and employment. Any cut would also be a potential longer-term boost to homeowners, as the mortgage market may price in future lower rates, but would give concerns to savers as the rate at which their money earns interest would decrease. Elsewhere, Halifax released its latest UK house price data showing where property fees have risen fastest, while stock markets including the FTSE 100 are reacting to Trump tariffs coming into effect. Interest rates chart: The fall and rise in the UK Here's a more graphic representation of just how high interest rates rose as inflation spiralled under the last government - and how rates are still only slowly coming back down under this one. For over a decade, borrowing money was super cheap, very nearly free. Anyone with repayments to make between 2020 and 2023 got a bit of a shock to the system if their deal was tracking the base rate, that's for sure. But we are, as the right side of the chart shows, on a steady path downwards in the past year or so. 'Gradual and careful,' the BoE calls it. Plenty say that even this is too fast though, with inflation having been rising once more of late. 7 August 2025 11:47 Supermarket wars continue with new cheapest store The UK has a new cheapest supermarket, if you've not already heard - Aldi lost the title for the first time in two years. You can read more about that here including how loyalty cards impact (or don't!), and you can vote in our poll below to tell us where you shop too! Karl Matchett7 August 2025 11:40 Households still cautious over future tax burdens - expert Aside from being a negative for savers, most households will generally see an interest rate cut as a positive. However, the savings it makes them on bills and borrowing may not feed through to spending immediately, says one expert - because of fears about what lies ahead. That's particularly prevalent given talk of more taxes in the Budget this autumn. 'Investors are primed for an interest rate cut from the Bank of England later today, given the highly sluggish nature of the economy, and the rising unemployment rate,' said Susannah Streeter, head of money and markets, Hargreaves Lansdown. 'There will be hopes that if loans become cheaper, it will help boost consumer and business confidence but there's a long way to go. In the meantime, speculation over potential tax rises in the Autumn Budget may keep households and companies cautious, given the uncertainty over where extra burdens may land. 'There will be a lot of focus on the voting split on the Monetary Policy Committee, given that the views are highly unlikely to be unanimous, and the leaning of members could help indicate the speed of future rate cuts.' Karl Matchett7 August 2025 11:30 Interest rates and mortgages: Saving money, or overpay the difference? If you're on a tracker mortgage rate (or if you're soon to negotiate down a deal from a couple of years ago) then an interest rate cut today could be to your benefit, saving a bit of outgoing money. However, if you still put that into paying off your property (if your terms allow - always check!) then it can save you way more in the long run. Jinesh Vohra, CEO of mortgage app Sprive, said: 'Around one in five (17 per cent) mortgage holders are currently on variable rate mortgages, and if the Bank of England cuts the base rate today, their mortgage rate will drop as a result. 'For example, someone with a £150,000 mortgage at 4.25% over 25 years currently pays around £812 a month. If the rate is cut by 0.25%, their monthly payment would fall to £791 — a saving of £21 a month, or £252 a year. 'While it might be tempting to enjoy that saving, those who can afford to should consider maintaining their current payment level and using the £21 saving to overpay their mortgage instead. Doing so could save them £4,280 in interest and help clear their mortgage 1 year and 1 month earlier. 'Overpaying is one of the most powerful ways to become mortgage-free faster. Even small, regular overpayments can knock years off the term and save thousands in interest — helping mortgage holders reach financial freedom sooner, without stretching their budget.' Karl Matchett7 August 2025 11:20 Companies latest: Deliveroo, WPP, InterContinental Here's a quick wrap of the latest companies announcements and financials this morning: Deliveroo saw sales increase in the first half of the year with more people ordering takeaways, but the company swung to a loss even so. It is set for a takeover by DoorDash later this year in a £2.9bn deal. Advertising firm WPP has cut 7,000 jobs and saw profits drop from £338m a year ago to £98m this year as a tough year continues. Shares were down 2.7 per cent this morning and have dropped by more than half this year. And Holiday Inn's owner, InterContinental Hotels, said a key metric in revenue per available room has slowed - but overall pre-tax profits rose 13 per cent from last year. Karl Matchett7 August 2025 11:07 Mortgage market facing a reckoning as super-cheap deals come to an end Aside from the questions of inflation and economic growth, there's one additional big reason why lots of people hope for interest rate cuts, now and in the coming months. Many thousands of homeowners are set to see their five-year fixed term mortgage deals expire in the second half of 2025 - and given interest rates were 0.1 per cent for most of 2020, it's fair to say the increased payments they face will be a big shock to the system. One mortgage broker suggests the fall-out will dampen down house prices and many need to reassess their financial positions. Ranald Mitchell, from Charwin Mortgages, said: 'For many borrowers, 2025 will prove the hangover after the house party. Millions are waking up to find their cheap-as-chips pandemic mortgage deals have vanished, replaced with monthly payments that bite. "For five-year fixers coming off sub-2% rates, some are facing £300–£500 extra a month. It's not just a shock, it's a financial slap. This won't crash the market, but it will chill it. Potential movers may pause and reflect on their new monthly financials. The days of borrowing big and breezing through affordability checks are over.' Karl Matchett7 August 2025 10:40 FTSE 100 an outlier as global stock markets rise Across most global markets, shares were on the up overnight and today despite those tariffs coming into effect - the UK's FTSE 100 is very much an outlier there, as AJ Bell's Danni Hewson explains. 'The FTSE 100 is struggling to make meaningful progress this week, running to stand still as investors weigh the latest economic, geopolitical and corporate developments,' says Ms Hewson. 'Not helping today was several heavyweight names trading without the rights to their dividend. This held the index back despite gains on Wall Street and across Asia. Investors are largely greeting widespread tariffs taking effect with a shrug. 'The exception again was India, with the Trump administration ordering a big increase in tariffs to punish the country for buying and selling Russian oil.' Karl Matchett7 August 2025 10:20 UK not facing threat of stagflation - bank expert With economic growth still a struggle to find, you may hear the term 'stagflation' being used. That shouldn't the case, says one industry expert - it's not the situation the UK faces right now. Will Hobbs, from Barclays private bank and wealth management, said current indicators do not suggest the UK is any more at risk of that than previously. 'Given the current margins for error in the UK's economic dataset, it remains possible to tell almost any story you want on the UK's economic outlook. Our optimistic [view] rests in part [with] household balance sheet and rising real incomes, both of which provide a buffer against broader uncertainty. 'Of course, there are multiple factors to consider. We, like the consensus, expect the Bank of England to cut rates, likely following a fairly even vote split. 'We would resist overuse of the term 'stagflation' to describe the UK's position. The misery indices (unemployment plus inflation), looks unremarkable today relative to the experience of the last century.' Karl Matchett7 August 2025 10:00 How interest rates impact on your money, savings and bills If you have money in a savings account, it's the other side of the see-saw to mortgages: rates going down mean you'll earn less interest. As there's still a bit of a fierce battle raging among banks and building societies for customers, it's still possible to get good deals if you are happy to lock in money for a fixed period of time or contribute regular amounts, with several offering around 4.5 per cent or even more. There are always terms and conditions to be met, so ensure it suits your circumstances, but the opportunity remains there to save and earn money at a better rate than inflation, which currently sits around 3.5 per cent. Do be aware of the amount of interest you can earn without being taxed, though. If your savings account interest rate isn't fixed, banks can always change the rate you get up or down. A tax-efficient way of saving is to use a Cash ISA, where everyone has a £20,000 personal allowance each year. Credit card repayments and bank or car loans are of course also affected by interest rates, as the amount they all charge for borrowing will be altered. For credit card users, it's always ideal to pay off the full amount each month if you are able to, to avoid interest being charged at all - depending on your circumstance and the account type, they can be one of the more costly ways to borrow. Karl Matchett7 August 2025 09:40 What do interest rate cuts mean for mortgages? Broadly speaking, as increasing interest rates over the last few years have meant mortgage repayments going up, then the reverse should also hold true: lower rates, lower repayments. However, there are several important things to note. Firstly, that it's only the interest on the repayments which should change — your capital repayments will naturally decrease the more you pay off your mortgage. Secondly, the base rate isn't the rate you are necessarily charged by your bank or lender for the mortgage — they'll base theirs off the BoE rate but it doesn't have to be the same. More than half a million people do, however, have a mortgage which tracks the BoE interest rate and those will see an immediate change. Far more have fixed term deals which expire each year and need renegotiating. Additionally, if you've got a fixed term on a mortgage plan, you won't see a change in any case until that comes to an end. Karl Matchett7 August 2025 09:20
BBC News
13 minutes ago
- BBC News
RSV vaccine cuts hospital risk for newborn babies, research shows
Newborn babies are 80% less likely to be hospitalised with a life-threatening virus if their mother has been vaccinated in pregnancy, new research has found. Respiratory syncytial virus (RSV) is one of the leading causes of bronchiolitis and pneumonia in babies under six months old.A RSV immunisation programme was launched last year for women over 28 weeks pregnant, with around half of those eligible taking up the jab. Public Health Scotland said the programme resulted in 228 fewer babies under three months old being admitted to hospital with serious infection. RSV usually only has mild symptoms, but it can lead to breathing problems in the most vulnerable vaccine is offered to prevent babies contracting the virus in the first six months of their lives – the period when they're most at risk of severe illness. Public Health Minister Jenni Minto said: "RSV can be life-threatening for newborn infants, that is why it is so positive to see this evidence of the impact of the maternal RSV vaccine."I strongly encourage all pregnant women who are offered the vaccine to take up the offer in order to protect their newborn babies."The vaccine, which is also offered to elderly people, resulted in a 62% reduction in RSV-related hospitalisations among the eligible 75-79 age group.
The Independent
13 minutes ago
- The Independent
WPP reveals around 4,000 roles cut in past six months as profits tumble
Global advertising giant WPP has cut its workforce by around 4,000 since the start of the year as profits plunged in a 'challenging' first half. The firm said the number of staff employed by the group dropped by 3.7% to 104,000 over the first six months of 2025. Job losses were largely focused on its WPP Media business while it also moved to reduce its workforce through natural staff turnover to cut costs in the face of tougher trading. Since June last year, the group has seen 7,000 roles go, although around 1,400 roles were stripped out with the sale of communications agency FGS Global in December last year. The group reported pre-tax profits tumbling to £98 million for the six months to June 30, down from £338 million a year earlier. WPP's outgoing chief executive Mark Read, who will be replaced by former Microsoft UK boss Cindy Rose on September 1, said: 'It has been a challenging first half given pressures on client spending and a slower new business environment. 'We have, however, made significant progress on the repositioning of WPP Media, simplifying its organisational model to increase effectiveness and reduce costs.' The group halved its interim dividend payout to 7p per share, saying it would allow 'our incoming CEO to review the group's strategy and capital allocation policy while maintaining financial flexibility'. 'The priority is to drive sustainable growth supported by an appropriate level of financial flexibility while balancing returns to shareholders,' he added. Shares, which have fallen to their lowest level in 16 years amid recent trading woes, fell another 2% in morning trading on Thursday. WPP – which owns agencies such as Ogilvy and VML – warned over annual profits in July as clients cut spending amid global economic uncertainty, with trading worsening over the second quarter. It saw revenues fall 7.8% in the first half, down 2.4% on a like-for-like basis, with the decline picking up pace to 5.8% in the second quarter. WPP said it continues to expect full-year results in line with the lowered guidance given in July. Mr Read is leaving after seven years at the helm and a three-decade career at WPP. His successor has worked at Microsoft for nine years, most recently as its chief operating officer for global enterprise. She was previously the president of the technology giant for Western Europe, and the chief executive of the UK business. Recruiting Ms Rose is seen as aligning with WPP's efforts to sharpen its focus on artificial intelligence (AI) and digital transformation, in a bid to keep up with rapidly evolving demands.
