GSK, a global pharmaceutical and vaccine manufacturer, rose 1% in Tuesday's London trading after climbing as much as 5% following stronger-than-expected second-quarter results. The company announced a 1.9 billion, or approximately $2.52 billion, cost-savings program designed primarily to fund additional late-stage clinical development. GSK is expanding its research program before patent protection begins expiring in 2028 for dolutegravir, an important ingredient in its HIV medicines.
Second-quarter revenue reached 8.41 billion, exceeding the 8.24 billion expected by analysts, while core earnings of 50.5 pence per share surpassed the 47.1-pence estimate. GSK maintained its expectation for annual sales growth of 3% to 5% and core earnings growth of 7% to 9%. Management now expects turnover to finish in the upper half of the sales range, although profit growth may remain in the lower half of its projected range. The company also announced 400 million of investment in the United Kingdom.
GSK expects to begin more than 20 late-stage studies during 2026, compared with its previous plan for approximately 10. The program covers 18 potential indications involving seven assets across oncology, respiratory medicine, hepatology and vaccines. The restructuring is expected to cost 2.4 billion, with savings coming from artificial-intelligence adoption, technology changes, supply-chain improvements and reallocating support functions. GSK exceeded the revenue consensus by 170 million and the core earnings estimate by 3.4 pence per share, providing measurable support for management's decision to expand clinical investment while maintaining annual guidance.