GSK Navigates Vaccine Sales Decline, Prepares for Key Drug Launches Amid Potential Tariffs

British pharmaceutical giant GlaxoSmithKline (GSK) remains optimistic about its growth prospects despite facing challenges in its vaccine business and potential U.S. drug import tariffs. The company reported a 4% increase in total sales to £7.5 billion ($9.74 billion) for the first quarter of 2025, maintaining its full-year guidance of 6% to 8% growth in core operating profit.

Vaccine Sales Struggle as Specialty Medicines Thrive

GSK's vaccine division experienced a 7% decline in sales, dropping to £2.1 billion ($2.8 billion) during the first quarter. The company attributed this downturn to weaknesses across its shingles, RSV, and established vaccines categories. Despite these setbacks, GSK executives expressed confidence in the long-term performance of their vaccine portfolio.

In contrast, the specialty medicines sector showed robust growth, with sales increasing by 17% to £2.93 billion ($3.9 billion). This division, which includes key products in HIV and oncology, is expected to maintain its momentum due to several anticipated near-term launches.

Strategic Preparedness for Potential Tariffs

As concerns mount over possible U.S. pharmaceutical tariffs, GSK CEO Emma Walmsley assured investors that the company has developed "mitigation options" to address these challenges. During a conference call with analysts, Walmsley stated that GSK is prepared to utilize "multiple levers" to navigate and mitigate potential pharmaceutical-specific tariffs.

The company's preparedness stems from strategic decisions made during its 2022 consumer healthcare business separation. GSK has focused on enhancing regional supply chain resilience and making intentional choices regarding product sourcing. Additionally, the shift towards higher-margin specialty products and identified productivity improvements are seen as potential countermeasures to tariff impacts.

Key Drug Launches on the Horizon

GSK is poised for several significant drug launches in the coming months, which are expected to bolster its growth trajectory:

1. Nucala: A biologic treatment for chronic obstructive pulmonary disease (COPD) awaiting FDA approval on May 7, 2025.

2. Depemokimab: A potential December 2025 approval candidate for severe asthma with nasal polyps, with estimated peak annual sales of over £3 billion ($4 billion).

3. Blenrep: A once-withdrawn multiple myeloma drug recently approved in the U.K., with an FDA decision expected in July 2025. GSK projects peak sales of more than £3 billion ($4 billion) for this oncology treatment.

These anticipated approvals are crucial components of GSK's ambitious 2031 sales target of over £40 billion ($53 billion). As the company continues to navigate the challenges in its vaccine business and prepares for potential regulatory hurdles, these new drug launches represent key opportunities for sustained growth in the competitive pharmaceutical landscape.