Strong second-quarter results and a £400 million U.K. investment accompanied the program as GSK prepares for dolutegravir patent expiry and seeks to support its late-stage pipeline and 2031 sales target.
GSK paired a new three-year cost-savings program with stronger-than-expected second-quarter results, as the British drugmaker moves to protect profitability ahead of the loss of exclusivity for dolutegravir, a cornerstone of its HIV business. The company said it is targeting £1.9 billion ($2.52 billion) in annual savings by 2029 through its "Accelerate Growth" initiative, with implementation costs of about £2.4 billion and most of the savings set to be reinvested in its late-stage pipeline. Shares rose 4.2% in midday trading after GSK reported second-quarter revenue of £8.41 billion, ahead of the £8.24 billion analyst consensus, while adjusted earnings per share of 50.5 pence topped expectations of 47.1 pence. Chief Executive Luke Miels said the plan, together with disciplined capital allocation, is intended to support operational performance, shareholder returns and the company’s 2031 sales outlook. Dolutegravir, which generated £2.08 billion in second-quarter sales, is due to lose exclusivity between 2028 and 2030. GSK said part of the savings will be used to improve margins and profitability during that period. Specialty Medicines revenue rose 14% to £3.78 billion and Vaccines increased 9% to £2.28 billion, while General Medicines fell 9% to £2.34 billion. Arexvy sales reached £192 million, more than double the £77.8 million analyst estimate, and meningitis vaccines rose 22% to £462 million. Shingrix revenue increased 4% to £888 million, while Trelegy sales fell 7% to about £800 million. GSK also announced a £400 million investment in the United Kingdom, including a new research and development facility. The company said it expects to start more than 20 Phase III clinical trials in 2026 and continues to target more than £40 billion in annual turnover by 2031. It kept its 2026 guidance for sales growth of 3% to 5% and core operating profit and core EPS growth of 7% to 9%, while saying sales and core operating profit should land in the upper halves of those ranges and core EPS in the lower half. GSK raised its vaccines outlook to broadly stable to low single-digit growth and lowered its General Medicines forecast to a low- to mid-single-digit decline. The company also declared a quarterly dividend of 17 pence per share.