GSK Plc - ADR

Strong Financial Performance: GSK reported an 8% increase in sales to over £31 billion for 2024, with core operating profit up 13% and core EPS up 12%. This reflects solid growth from specialty medicines, reinforcing the company's transformation post-demerger. The company has declared an increased dividend of 61p per share, anticipating a further increase to 64p in 2025.

Growth Drivers and Outlook: GSK expects continued strong growth in specialty medicines, projecting it to account for over 50% of sales by 2031. Products in oncology, respiratory immunology, and HIV are expected to drive low double-digit sales growth in 2025, with the potential for five new product approvals this year, including Blenrep and depemokimab.

Risks in the Vaccines Segment: Vaccine sales fell by 3% in 2024 due to external pressures in the U.S. and China, particularly affecting Arexvy and Shingrix. GSK anticipates continued headwinds in 2025 with low single-digit declines in vaccine sales; however, longer-term growth is expected as the pipeline matures.