GSK stock jumped Wednesday after the British drugmaker said it's "well positioned" to respond if the Trump administration levies tariffs on drug imports.
More than half of GSK's sales stem from the U.S., according to FactSet.
President Donald Trump said earlier this month that he plans to implement "major" tariffs on drug products. Members of his administration have said those could come in the next month or two. But GSK says it has identified "mitigation options" in the supply chain and "productivity initiatives" that could help it navigate potential tariffs on pharmaceutical products.
GSK stock rose 2.3%, closing at 39.85. Shares are trading above their 50-day and 200-day moving averages in lengthy consolidation with an entry at 45.92, according to MarketSurge.
GSK Stock: Sales And Earnings Beat Forecasts
Across all products, GSK's sales climbed 2% to 7.52 billion pounds. That translates to roughly $10.06 billion, according to FactSet. Analysts expected a lower 7.26 billion pounds. In constant currency, sales climbed 4%.
GSK said core earnings increased 4% on a strict, as-reported basis and 5% when excluding the impact of exchange rates.
Notably, sales of GSK's biggest moneymaker, HIV treatments, climbed 6%. Sales of respiratory drugs also surged 26%, while cancer drug revenue soared 52% — all on a strict, as-reported basis.
But revenue from shingles vaccine, Shingrix, dropped 8% to 867 million pounds, or $1.16 billion. Still, that widely beat expectations for 807.4 million pounds, according to FactSet. Another vaccine, the respiratory syncytial virus shot for older adults called Arexvy, brought in 78 million pounds, — about $104 million — missing forecasts for 94.6 million pounds and diving 57%.
Arexvy sales took a hit after the Advisory Committee on Immunization Practices, under the Centers for Disease Control and Prevention, recommended just one RSV vaccine for eligible adults. People age 60 and older and age 50 to 59 who are at risk of severe RSV are eligible for vaccination.
GSK also noted lower demand for the shingles vaccine in the U.S.
Still, GSK retained its outlook for the year. The company expects sales to increase by 3% to 5% with core earnings rising 6% to 8%.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
