Will GSK's Specialty Medicines Boost Q2 Revenue Growth?

Sales of the Specialty Medicines unit are expected to have increased by a double-digit percentage at CER in the second quarter, driven by double-digit growth in all therapy areas, HIV, RI&I and Oncology.

The HIV portfolio, marketed through GSK's majority-owned ViiV Healthcare business, is likely to remain the largest contributor to the Specialty Medicinessegment. Increasing patient demand for Dovato and long-acting regimens, Apretude and Cabenuva, is likely to drive growth in HIV, partially offsetting regional pricing pressures. Sales of Triumeq and Juluca are likely to have declined.

In RI&I, Nucala is expected to remain the major growth driver as physician adoption remains strong. Exdensur in respiratory and Benlysta in immunology are likely to be key contributors in RI&I in the second quarter, reflecting strong product demand.

Oncology sales growth is expected to be driven by strong patient demand for new oncology drugs, Jemperli, Ojjaara/Omjjara and Blenrep combos, partially offset by a decrease in Zejula.

Overall, the Specialty Medicines segment is expected to deliver another healthy performance in the second quarter, mainly driven by strong demand for Cabenuva, Apretude, Nucala, Blenrep and Benlysta.

Investors Await Fresh Pipeline Updates From GSK on Q2 Call

GSK is also expected to provide updates on key medicines in its Specialty Medicines pipeline at the second-quarter conference call. Last month, the FDA approved Utebzi/tebipenem pivoxil for treating complicated urinary tract infections. Earlier this week, the FDA approved Jideytro (zidesamtinib), a ROS1 selective inhibitor, in the United States for previously treated ROS1-positive non-small cell lung cancer. Regulatory applications seeking approval of bepirovirsen for chronic hepatitis B are under review in the United States and some other countries. FDA decision on the filing is expected in October.

Key pipeline candidates in late-stage development are efimosfermin for metabolic dysfunction-associated steatohepatitis or MASH and risvutatug rezetecan, a B7-H3 antibody drug conjugate for second-line extensive stage small cell lung cancer. Earlier this month, GSK discontinued the development of a late-stage candidate, camlipixant, for refractory chronic cough.

GSK is also developing innovative ultra-long-acting HIV regimens for treatment and PrEP, which can extend the dosing intervals of the injections. Updates are expected on the call.

Competition for GSK’s Specialty Medicines

In the Specialty Medicines segment, most of GSK’s products are up against significant competition from small as well as large pharmaceutical companies like AstraZeneca AZN, Merck MRK, Sanofi SNY, Gilead, Pfizer, J&J and Novartis, among others.

Nucala faces increasing competition from biologics such as AstraZeneca’s Fasenra and Sanofi’s Dupixent. In HIV, GSK’s medicines face competition from Gilead and MRK’s drugs. AstraZeneca, Pfizer, Merck and Lilly are GSK’s key competitors in the oncology space.

GSK’s Price Performance, Valuation and Estimates

GSK stock has risen 5.3% so far this year compared with an appreciation of 12.2% for the industry.

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GSK stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 10.16 on a forward 12-month basis, lower than 18.78 for the industry. The stock also trades above its 5-year mean of 9.92.

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The Zacks Consensus Estimate for earnings has risen from $4.82 to $4.84 per share for 2026, while that for 2027 has risen from $5.11 to $5.16 per share over the past 30 days.

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GSK has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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