(Reuters) -British drugmaker GSK said on Wednesday it expects to report annual sales and profit towards the top end of its forecast range, adding that its outlook includes the impact of tariffs in
GSK Aims for Strong Sales and Profit Growth by 2025 Amid Challenges
By Pushkala Aripaka and Maggie Fick
(Reuters) -GSK expects to deliver annual sales and profit growth towards the top end of its forecasts after beating second-quarter expectations on Wednesday, in a boost to its efforts to fuel growth despite product development and tariff challenges.
The British drugmaker is hoping to reach annual sales of over 40 billion pounds ($53.44 billion) by 2031, even as it faces potential pharmaceutical tariffs and drug pricing pressure in the world-leading U.S. market.
"We're very well positioned and continue to be part of investments so that our portfolio in the U.S. is more and more supplied from the U.S.," CEO Emma Walmsley told journalists.
She added that GSK was also in talks with President Donald Trump's administration, which is pushing drugmakers to cut prices, but offered few details.
The U.S. pharmaceuticals market - worth around $635 billion - makes up slightly over half of GSK's sales and is central to its growth plans.
GSK said it had accounted for levies already implemented by Washington and expected tariffs on Europe's exports under a new U.S.-EU trade deal, as well as possible duties resulting from a U.S. investigation into pharmaceutical imports.
It expects 2025 revenue to increase between 3% and 5%, with core profit per share growth of 6% to 8% at constant currency rates.
EYES ON DRUG DEVELOPMENT
GSK is focusing on expanding its product pipeline as it faces rising competition and declining sales of top drugs and vaccines.
It expects five new major approvals this year.
While second-quarter turnover growth of 6% to nearly 8 billion pounds and earnings of 46.5 pence per share beat analyst estimates, investors are focused on GSK's pipeline as it awaits a final U.S. approval verdict on cancer drug Blenrep.
Analysts say a rejection might force GSK to rethink its 2031 sales target as it is also bracing for patent expirations in its HIV portfolio.
The company's HIV business, as well as specialty medicines, respiratory, and oncology divisions, recorded double-digit revenue growth in the quarter.
But Barclays analysts cautioned HIV sales growth would be slower in the second half due to the timing of stock sales and availability.
GSK expects currency headwinds to be a drag of 4% and 7% on 2025 sales and profit growth, respectively, on a reported basis.
Its shares rose as much as 2% and were trading 1.5% higher at 1127 GMT.
($1 = 0.7486 pounds)
(Reporting by Pushkala Aripaka in Bengaluru and Maggie Fick in London; Editing by Subhranshu Sahu, Sharon Singleton and Joe Bavier)
