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(Sharecast News) - GSK raised its full-year guidance on Wednesday, after delivering stronger-than-expected third-quarter results, driven by robust growth in specialty medicines and steady contributions from its vaccines and general medicines divisions.
The FTSE 100 pharmaceutical group reported turnover of 8.55bn for the three months to September, up 7% at actual exchange rates and 8% at constant exchange rates.
Core operating profit rose 11% at constant rates to 2.99bn, while core earnings per share increased 14% to 55p.
Reported operating profit and earnings per share more than doubled, reflecting lower legal expenses and higher other operating income.
Growth was underpinned by a 16% rise in specialty medicines sales to 3.4bn, including a 15% increase in respiratory, immunology and inflammation to 1bn, and a 39% jump in oncology to 500m.
HIV medicines generated 1.9bn in sales, up 12%.
Vaccines revenue rose 2% to 2.7bn, led by Shingrix and Arexvy, while general medicines gained 4% to 2.5bn, supported by a 25% rise in Trelegy sales.
GSK said it generated 2.5bn in cash from operations and 1.2bn in free cash flow.
The company declared a third-quarter dividend of 16p per share and confirmed plans to spend 2bn on share buybacks by mid-2026, with 1.1bn already completed this year.
Following the strong quarter, GSK upgraded its full-year 2025 guidance.
It said it now expected turnover to grow between 6% and 7%, compared with a previous forecast of up to 5%.
Core operating profit is projected to rise 9% to 11%, up from a prior range of 6% to 8%, and core earnings per share was expected to increase 10% to 12%, versus earlier guidance of up to 8%.
"GSK's momentum continues with another quarter of strong performance, supporting upgraded guidance for 2025, and positioning us well for 2026 and achieving our longer-term growth outlooks," said chief executive Emma Walmsley in her final quarterly update as CEO.
"Sales grew in all areas, with particularly strong performances in specialty medicines driven by double-digit growth in respiratory inflammation and immunology, oncology and HIV."
GSK highlighted ongoing progress in its research and development pipeline, with four major approvals so far in 2025, including Blenrep for multiple myeloma and Nucala for chronic obstructive pulmonary disease.
The firm said it expected a US decision on depemokimab for asthma in December, adding that it was advancing 15 potential new products with projected annual sales above 2bn by 2031.
Royalty income for 2025 was expected to total 800m to 850m, including proceeds from an intellectual property settlement related to mRNA patents.
GSK reiterated that it remained prepared to mitigate potential financial impacts from US and European tariffs on pharmaceutical imports.
At 0831 GMT, shares in GSK were up 4.17% at 1,712.5p.
Reporting by Josh White for Sharecast.com.