American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

GSK shares surge around 6% as drugmaker raises sales target and boosts dividends

by admin February 5, 2025
February 5, 2025
GSK shares surge around 6% as drugmaker raises sales target and boosts dividends

Shares of British pharmaceutical giant GSK surged on Wednesday after the company raised its long-term sales forecast and reported strong financial results for 2024.

The stock climbed 5.9% in early trading, making it the top performer on the FTSE 100 and on track for its biggest one-day gain since 2022.

GSK increased its 2031 sales target to more than £40 billion, up from its previous estimate of £38 billion.

The upward revision reflects the company’s confidence in its drug pipeline, particularly in specialty medicines, HIV treatments, and oncology drugs.

The improved guidance comes as GSK reported that its total sales grew by 3% in 2024, reaching £31.4 billion.

At constant exchange rates, this represented a 7% increase.

Growth was largely driven by the performance of its specialty medicines and HIV treatments, offsetting weaker vaccine sales.

GSK earnings rise despite Zantac litigation charge

GSK’s core operating profit grew by 11% at constant exchange rates, demonstrating strong underlying business momentum.

However, total operating profit dropped 40% to £4 billion due to a one-off £1.8 billion charge related to the settlement of Zantac litigation claims.

Despite the legal costs, the company remains optimistic about its future performance.

For 2025, GSK expects revenue growth of between 3% and 5% at constant exchange rates, with core operating profit projected to rise by 6% to 8%.

The company’s confidence is fueled by what it describes as an “outstanding” late-stage drug pipeline.

CEO Emma Walmsley highlighted GSK’s commitment to investing in research and development (R&D) to drive further innovation in respiratory, immunology, oncology, and HIV treatments.

£2 billion share buyback program and GSK share price forecast

GSK also announced plans to enhance shareholder returns.

The company declared a fourth-quarter dividend of 16p per share and expects to increase the total dividend for 2025 to 64p per share, up from 61p last year.

In addition, GSK unveiled a £2 billion share buyback program to be executed over the next 18 months, a move aimed at returning capital to investors while signaling confidence in the company’s growth trajectory.

Despite the strong market reaction, some analysts remain cautious.

Richard Hunter, head of markets at Interactive Investor, said,

Despite the warm reaction to the numbers in opening trade, it seems that a cure for all GSK’s ills may yet be a touch too early to call, with the market consensus of the shares as a hold likely to remain intact for the time being.

GSK’s strategy moving forward focuses on strengthening its pipeline and expanding its presence in key therapeutic areas.

With a strong drug portfolio, a robust pipeline, and a commitment to shareholder returns, GSK is positioning itself for sustained growth in the coming years.

The post GSK shares surge around 6% as drugmaker raises sales target and boosts dividends appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Long AMCR: Amcor Plc Surges Past $10 Mark Post-Earnings, Eyes $10.60 Resistance
next post
These high-yielding REIT stocks are soaring in 2025

Related Posts

Venezuela’s tourism paradox: Rich in resources, but struggling...

September 14, 2024

Trump meme coin PNUT skyrockets 320% in 24...

November 12, 2024

Investor convicted in Trump Media insider trading case

May 11, 2024

Stanley tumbler ‘quenchers’ maker is being sued over...

February 24, 2024

DIA ETF forecast: what next for the Dow...

November 27, 2024

Asia markets today: Stocks rise as investors evaluate...

March 5, 2025

S&P 500 hits record high as Trump pushes...

January 24, 2025

Bank of England holds rates, stresses June cut...

May 11, 2024

Top tariff-proof S&P 500 index stocks to buy...

April 1, 2025

Bitcoin ETF options launch spurs record inflows

December 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved