GSK plc (GSK.L) | Investment Case

1. Company Snapshot

1.a. Company Description

GSK plc, together with its subsidiaries, engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the United Kingdom, the United States, and internationally.It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare.The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, HIV, immuno-inflammation, oncology, anti-viral, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterial, and dermatology.

It also provides consumer healthcare products in wellness, oral health, nutrition, and skin health categories.The company offers its consumer healthcare products in the form of nasal sprays, tablets, syrups, lozenges, gum and trans-dermal patches, caplets, infant syrup drops, liquid filled suspension, wipes, gels, effervescents, toothpastes, toothbrushes, mouthwashes, denture adhesives and cleansers, topical creams and non-medicated patches, lip balm, gummies, and soft chews.It has collaboration agreements with 23andMe; Lyell Immunopharma, Inc.; Novartis; Sanofi SA; Surface Oncology; Progentec Diagnostics, Inc.; Alector, Inc.; and CureVac AG., as well as strategic partnership with IDEAYA Biosciences, Inc.

and Vir Biotechnology, Inc.The company was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022.GSK plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.

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1.b. Last Insights on GSK

GSK's recent performance was driven by strong Q4 results, beating medium-term targets, and a solid guidance. Shore Capital notes the company has effectively delivered its medium-term plan a year early, with a potential £40 billion prize in sight. Citi raised its price target to £22.50, citing improving fundamentals. A clean fourth-quarter beat and modest 2026 guidance also contributed to positive momentum. Additionally, GSK's experimental cancer medicine, risvutatug rezetecan, received US orphan status, and a breakthrough trial result for its hepatitis B drug was announced.

1.c. Company Highlights

Last Price	2180
Change Percentage	-0.95%
Open	2194
Previous Close	2201
Market Cap ( Millions)	87944
Volume	6965252
Year High	2282
Year Low	1242.5
M A 50	1966.46
M A 200	1660.51

FCF Yield	5.71%
Dividend Yield	2.83%
ROE	37.19%
Debt / Equity	108.20%
Net Debt / EBIDTA	120.53%
Price To Book	5.35
Price Earnings Ratio	15.33
Price To FCF	17.52
Price To sales	2.69
EV / EBITDA	8.61

2. GSK's 2025 Results Show Strong Sales Growth and Positive R&D Output

GSK's 2025 results showed a strong financial performance, with sales growing 7% to over GBP 32 billion, driven by Specialty Medicines, up 17%, and vaccines. Core operating profit grew 11%, and EPS was up 12% to 0.2522, beating analyst estimates of 0.2353. The company's cash generation was strong at GBP 8.9 billion, supporting a 2p dividend upgrade to 66p. The operating margin increased by 110 basis points, driven by SG&A margin improvement and gross margin growth.

Publication Date: Feb -06

📋 Highlights

Segmental Performance

Specialty Medicines sales grew 17%, with Respiratory Immunology and Inflammation up 18%, driven by Benlysta and Nucala. Oncology sales were up 43%, with Jemperli up 89% and Ojjaara up 60%. HIV sales grew 11%, powered by long-acting injectables and Dovato. Vaccines sales were GBP 9.2 billion, up 2%, driven by Shingrix and Bexero.

R&D Output and Pipeline

GSK's R&D output remained positive, with 5 FDA approvals and 7 new pivotal trial starts. The company is focused on accelerating development to deliver new products to patients faster. The company has a strong pipeline, with 10 pivotal starts planned for 2026, including five from ADCs. The EMBOLD SCLC-301 study has started recruiting in second and third line, with US recruitment to begin later this year.

Guidance and Valuation

GSK guides for mid- to high single-digit growth in 2026, with sales expected to grow low double-digit for Specialty Medicines. The company's valuation metrics show a P/E Ratio of 15.33, P/B Ratio of 5.35, and Dividend Yield of 2.74%. With a strong pipeline and expected growth, the company's current valuation appears reasonable. The EV/EBITDA ratio of 8.61 and ROE of 37.19% also indicate a healthy financial position.

Future Prospects

The company's focus on execution and operational delivery is expected to drive top-line growth by maximizing launch products like Blenrep and Exdensur. The HIV franchise will see a significant evolution, with Dovato and Cabenuva driving growth, while Triumeq declines. The company's long-term growth prospects appear positive, with a goal to accelerate the pipeline through smart business development and create value for shareholders.

3. NewsRoom

GSK pays $950m for a pulmonary hypertension drug designed to avoid the bleeding risk that limits rival treatments

Feb -25