Feb 4 (Reuters) - GSK on Wednesday forecast sales growth to slow in 2026 in the first outlook presented by new CEO Luke Miels as the drugmaker shifts focus on expanding its pipeline to counter looming
GSK's New CEO Aims for Accelerated Drug Development and Growth
GSK's Growth Strategy Under New Leadership
By Bhanvi Satija and Pushkala Aripaka
LONDON, Feb 4 (Reuters) - GSK's new CEO Luke Miels said on Wednesday that the drugmaker will aim to lift sales growth and speed up work on new medicines in its next phase of growth through a sharper focus on programmes that can change standard of care and bolt-on deals.
Miels, who took over from Emma Walmsley in January, will steer the British drugmaker through a year where it aims to deliver commercially from a research ramp-up and counter looming patent expiries for its top-selling HIV drugs.
Sales Growth and Revenue Targets
"We need to accelerate what we have and to add to it via smart business development," he said on a call with journalists.
Capital Allocation and Business Development
GSK shares rose as much as 5.6% to 2,055 pence apiece, their highest in nearly 25 years as Miels, in his first outlook presentation, backed the company's sales target of generating more than 40 billion pounds ($55 billion) by 2031.
Challenges in the Vaccine Business
GSK shares have staged a strong recovery compared to several European rivals after a turbulent 2025 amid tariff threats and drug pricing pressures from the U.S. government. Gains have been helped by insider Miels' appointment, strong earnings momentum and growth of its specialty medicines business.
NO CHANGE TO CAPITAL ALLOCATION STRATEGY
Investors have previously struggled to have faith in GSK's ambitious long-term sales target, but Miels is hoping to regain trust.
Sheena Berry, healthcare analyst at Quilter Cheviot, said the outlook represents a steady and credible start for Miels.
GSK does not plan any major changes to how it would allocate capital for business development. Miels said the company would target deals in the 2-billion to 4-billion-pound range, but there could be some exceptions to this rule.
The company would look for assets that were "hiding in plain sight" and would help bolster GSK's late-stage pipeline, he said.
"Typically we like a programme where the science is reasonably established," he added.
Last month, GSK made a $2.2 billion swoop for RAPT Therapeutics for an experimental food allergy drug.
SALES TO GROW MORE SLOWLY THAN IN 2025
GSK expects revenue to grow 3% to 5% this year, at constant currency rates, after it rose 7% in 2025 and topped expectations. Barclays analysts said the forecast was slightly below consensus, primarily due to foreign exchange pressure.
The company reported core earnings per share of 25.5 pence for the three months ended December 31, after sales rose 8% to 8.62 billion pounds, beating expectations.
New launches are key for GSK to sustain growth. It won five U.S. regulatory approvals last year including for asthma drug Exdensur and blood cancer drug Blenrep, which are expected to bring in blockbuster peak sales.
But uncertainty over GSK's vaccine business, especially in the U.S., is likely to spill over into 2026, after Health Secretary Robert F. Kennedy Jr. upended several policies.
GSK expects 2026 sales from its vaccines business and general medicines unit to decline by a low-single-digit percentage or remain stable. Its specialty medicines business, though, is expected to report low-double-digit growth.
($1 = 0.7292 pounds)
(Reporting by Sri Hari N S, Pushkala Aripaka in Bengaluru, and Bhanvi Satija in London; Editing by Thomas Derpinghaus, Bernadette Baum and Emelia Sithole-Matarise)
