GSK signals confidence as strategy and capital deployment align

 GSK signals confidence as strategy and capital deployment align

Commenting on GSK’s full year results, Max Stanyard, Healthcare and Life Sciences Senior Analyst at RSM UK, said: “GSK’s results underline a business that has maintained momentum under its new CEO, with management confirming expectations of 7% revenue growth (at constant exchange rate) had been met, and that the company remained firmly on track to deliver £40bn of sales by 2031. That growth continues to be driven by higher-value speciality medicines, particularly across HIV, respiratory and immunology, where GSK has built strong commercial and scientific capability. In a sector facing mounting cost and regulatory pressures, the consistency of this outlook will be welcomed by investors.

“The ongoing share buyback, on track for completion by mid-2026,  reflects management’s confidence in cash generation and capital allocation discipline. It also suggests that, at this point in the cycle, GSK believes returning capital to shareholders represents the best use of funds. Importantly, this sits alongside continued investment in growth, indicating a balanced approach to capital allocation.

“The £2.2bn acquisition of RAPT Therapeutics further reinforces this. It adds ozureprubart – a potentially differentiated food allergy treatment – to GSK’s pipeline, reinforcing the company’s focus on high-value immunology assets and demonstrating a willingness to deploy capital on targeted bolt-on acquisitions. The timing of the deal – just weeks before Mr. Miels’ first results presentation as CEO – suggests continuity in GSK’s M&A strategy focused on targeted, pipeline-enhancing acquisitions rather than transformational deals. The move aligns with broader industry trends as the companies accelerate dealmaking to replenish pipelines ahead of looming patent cliffs. Attention now turns to key regulatory milestones which will determine whether GSK’s heavy R&D investment in key asthma and urinary tract infection innovation translate into the next phase of growth.”