GSK Plc - ADR

Q3 performance & guidance reaffirmed (good): - Sales +5% to GBP 8.9bn (CER); specialty +15% was the key driver. - Core operating profit +5%; core EPS +1% (margin broadly stable). - Cash generation very strong: GBP 7.4bn year-to-date (and CGFO target remains ~GBP 10bn for FY26). - Dividend: 17 pence paid for Q3. - 2026 outlook reconfirmed: full-year sales expected in the upper half of the range, core op profit upper half, and margin >31% (constant rates); EPS growth low half expected.

Launch momentum / near-term growth levers (good + opportunity): - Oncology: - First NSCLC launch (Jideytro): already delivered ~GBP 3m and expanding momentum. - Blenrep continuing to build (repeat prescriber growth; updated NCCN includes broader populations). - Exdensur ramping strongly—J-code July 1 then ASP document Oct 1; management says this is a pivot and expects an ongoing trend change. - Jemperli gained an additional indication (locally advanced rectal cancer). - Hibsago (hepatitis B functional cure): first finite treatment approved in US and Japan; launch planning underway for US/Japan, with China regulatory pathway expected next.

R&D acceleration & pipeline differentiation (good, but also a cost headwind): - They are accelerating late-stage development: 18 Phase III starts in 2026 so far (target originally +20 for the year; 4 more on track before year-end). - R&D spend +22% in Q3, tied to Accelerate Growth. - Pipeline readouts highlighted: strong early/late data for Jideytro/neladalkib (TKI-naïve), Ris-Rez (SCLC/osteosarcoma/sarcoma program momentum), Mo-Rez (ovarian PFS ~11 months vs historical 6–8), and AZUR-1 Jemperli (large share achieving durable complete response signals).