Amid speculation that US President Donald Trump may soon impose tariffs on pharmaceutical imports, British drugmaker GSK has stated it is "well positioned" to handle the effects of industry-specific tariffs.
President Trump has expressed his intention to introduce tariffs on pharmaceutics in the "not too distant future" having previously remarked, "We don't make our own drugs, our own pharmaceuticals - we don't make our own drugs any more [...] all I have to do is impose a tariff."
Despite potential trade pressure, the FTSE 100-listed company reaffirmed its forecasts for 2025 on Wednesday. Following this reassurance, GSK's shares saw an uplifting surge, rising nearly two per cent in early trading the same day, as reported by .
READ MORE: {}
In their forward-looking statement, GSK projected turnover growth of three to five per cent and core operating profit growth of six to eight per cent by 2025, with expectations for earnings per share to rise by a similar margin.
Hargreaves Lansdown's head of equity research, Derren Nathan, commented: "GSK has set a strong precedent for delivering earnings upgrades, but in the context of tariff uncertainty, drug pricing reviews and weak demand for some of its vaccines, in-line is just fine."
Nathan further noted the drugmaker's ambitious pipeline, highlighting: "Looking further ahead it's outlined 14 opportunities that it expects to launch over the next six years, each with annual sales potential of £2bn or more."
He concluded with optimism regarding the company's targets, stating: "These come with the usual clinical and commercial risks, but it gives GSK a solid chance of eclipsing its longer-term sales target of £40bn by 2031."
With these declarations, GSK surpassed analyst expectations even as possible tariff threats loomed.
GSK beats analyst expectations amidst tariff threat
Most Read
The pharmaceutical company reported a first-quarter turnover of £7.52bn and a core profit of 44.9p per share, exceeding analyst predictions. Sales in speciality medicines saw a rise of 17% to £2.9bn, driven by a 28% increase in respiratory, immunology and inflammation.
However, vaccine sales experienced a decline of six per cent, as a 57% drop in arexvy overshadowed a 20% rise in meningitis vaccines. The company announced a dividend of 16p for the first three months of 2025, with 64 expected for the full year.
An update was also provided on its £2bn share buyback programme that started at the beginning of the year, revealing that it had repurchased £273m shares. Despite raising its long-term sales target to over £40bn by 2031 in February, GSK may face trading uncertainties with the US that could potentially disrupt its goal.
Emma Walmsley, CEO at GSK, stated: "GSK continues to make strong progress, demonstrating the quality, strength and resilience of our portfolio. She added: " She further added: "This momentum, together with the strength of our portfolio and proven ability to drive operating leverage, underpin our confidence in guidance for the year and our longer-term outlooks."