Dan Coatsworth, head of markets at AJ Bell, said: “The first set of results under new GSK boss Luke Miels can hardly be said to have made much of a splash but that may be no bad thing as far as he’s concerned.
“The numbers are solid enough – sales rising and returns to shareholders continuing at pace even if earnings were a touch off expectations. Plus, there were no alarms on the outlook as GSK stuck with 2026 guidance.
“This low-key start gives Miels space to chart out a course through what could be some choppy waters ahead as GSK faces the task of delivering commercially successful new drugs to make up for impending patent expiries, all while delivering on demanding growth targets.
“Predecessor Emma Walmsley did set things up nicely for Miels in one sense, with GSK achieving five new drug approvals in 2025, all of which have significant potential. However, delivering on this potential will not be easy and the decision to set a £40 billion revenue target for 2031 also leaves Miels a hostage to fortune.
“Reports suggest he may target M&A as he looks to augment GSK’s growth – with a focus on under-the-radar pharma and biotech names. While this sounds distinct from the sort of transformational acquisitions which often trip companies up, any acquisition strategy comes with risk.
“GSK shares have recovered from last April’s lows but if you zoom out it’s still been left for dust by its closest peer AstraZeneca. Up until 2019 the two companies had a broadly comparable market value but that has changed dramatically in the intervening years.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.