• Sales Growth: Increased by 8% to over GBP31 billion.
• Core Operating Profit: Up 13%.
• Core EPS: Increased by 12%.
• Dividend: Increased to 61p per share.
• Specialty Medicines Growth: Up 19% in 2024.
• Oncology Sales: Nearly doubled to more than GBP1.4 billion.
• HIV Sales Growth: Up 13% for the full year.
• Vaccine Sales: GBP9 billion, down 3%.
• Free Cash Flow: Improved to GBP3.5 billion, excluding Zantac payments.
• Net Debt: Reduced to GBP13 billion.
• Share Buyback Program: Announced up to GBP2 billion over the next 18 months.
• 2025 Sales Growth Guidance: Expected to increase between 3% and 5%.
• 2025 Core Operating Profit and EPS Guidance: Expected to increase between 6% and 8%.

• Warning! GuruFocus has detected 4 Warning Signs with GSK.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GSK PLC (NYSE:GSK) reported an 8% increase in sales for 2024, reaching over GBP31 billion, driven by strong growth in specialty medicines.
• Core operating profit rose by 13% and core EPS increased by 12%, leading to two upgrades in guidance for 2024.
• The company announced a dividend increase to 61p per share and plans to pay 64p in 2025, reflecting strong financial performance.
• GSK PLC (NYSE:GSK) expects five new product approvals in 2025, including BLENREP for multiple myeloma and depomokimab for severe asthma.
• The company achieved 13 positive Phase III readouts in 2024, strengthening its R&D pipeline, particularly in oncology and respiratory immunology.

Negative Points

• Vaccine sales faced challenges due to external pressures in the U.S. and China, impacting Arexvy and Shingrix.
• The introduction of the Inflation Reduction Act is expected to have a GBP150 million to GBP200 million impact on HIV sales in 2025.
• GSK PLC (NYSE:GSK) adjusted its expectations for vaccine sales growth, anticipating a decrease in low single-digit percent in 2025.
• The company faces pricing and genericization pressures in its General Medicines portfolio, expecting sales to be broadly flat in 2025.
• There is significant speculation and potential changes to U.S. vaccine policy, contributing to short-term pressures on the vaccine market.

Q & A Highlights

Q: Can you provide more details on your expectations for Shingrix in China for 2025, given the current macroeconomic challenges? A: Emma Walmsley, CEO, mentioned that while there are short-term pressures acknowledged for 2024 and 2025, GSK remains ambitious about the long-term potential in China. The partnership with Joffe is aimed at navigating these short-term challenges, focusing on expanding in high-tier cities.

Q: Within the mid-single-digit growth for HIV in 2025, are you anticipating much competitive impact from the launch of lenacapavir? A: David Redfern, President of Corporate Development, expressed confidence in continued growth for Apretude, highlighting the underdeveloped PrEP market in the U.S. and the strong efficacy of long-acting options. He noted that while lenacapavir may enter the market, it has limitations such as drug-drug interactions and nodules, which may not appeal to all patients.

Q: Can you discuss the international opportunity for Arexvy and what factors might limit your ability to access these markets in 2025? A: Luke Miels, Chief Commercial Officer, stated that GSK is encouraged by the early uptake of Arexvy outside the U.S., with national immunization programs in several countries. The focus is on differentiating based on clinical data, and the market research indicates positive perceptions of Arexvy's efficacy and cost-effectiveness.

Q: What are the expectations for peak sales of Arexvy and Shingrix, given the current headwinds? A: Emma Walmsley, CEO, reiterated that there is no change to the long-term ambitions for these assets. The short-term pressures are acknowledged, but the broader portfolio's strength and pipeline progress allow GSK to maintain its outlook for 2031, with significant contributions expected from specialty medicines and oncology.

Q: How does GSK view the commercial environment for Arexvy in the U.S., particularly with Pfizer gaining market share? A: Luke Miels, Chief Commercial Officer, acknowledged the competitive pressure but emphasized GSK's focus on retail and preserving value. He noted that Arexvy holds a significant market share and that GSK is positioning itself for future opportunities, including potential revaccination and expanded indications.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.