GSK Stock Rises Almost 22% in 6 Months: Time to Buy, Sell or Hold?

GSK GSK stock has risen 21.5% in the past six months. The consistently strong performance of the Specialty Medicines unit, regulatory and pipeline successes and an optimistic outlook for the long term are the key factors driving the increase amid several headwinds like slowing sales in the Vaccines unit, generic competition for some drugs and broader economic pressure.
Let's discuss these factors in detail to understand how to play GSK's stock amid the recent price increase.
GSK Specialty Medicines Unit on a Strong Footing
GSK is witnessing increased sales growth of its Specialty Medicines unit, particularly reflecting successful new launches in Oncology and long-acting HIV medicines. Sales are rising in all areas, HIV, Immunology/Respiratory as well as Oncology. Sales of the Specialty Medicines unit rose 19% in 2024, driven by double-digit growth in all therapy areas. The positive trend continues in 2025 with sales rising 17% in the first quarter of 2025.
In the segment, while products like Nucala and Dovato are key top-line drivers, new long-acting HIV medicines, Cabenuva and Apretude, as well as new oncology drugs Jemperli and Ojjaara, are also witnessing strong patient demand and contributing to top-line growth. In 2025, the company expects sales in the Specialty Medicines segment to rise in a low double-digit percentage at CER, despite the impact from the Inflation Reduction Act or IRA. Specialty Medicines, which now accounts for around 40% of GSK's sales, is expected to be more than 50% of GSK's total revenue by 2031.
GSK's Promising Pipeline
GSK is increasing R&D investment in promising new long-acting and specialty medicines in Respiratory, Immunology & Inflammation, Oncology and HIV areas.
GSK's pentavalent MenABCWY meningococcal vaccine and Blujepa/gepotidacin for treating uncomplicated urinary tract infection ('UTI') were approved in the United States in the first quarter of 2025. Its blockbuster drug Nucala was approved for treating chronic obstructive pulmonary disease or COPD, its fifth indication, in May 2025.
Regulatory applications seeking approval of the Blenrep combination for relapsed/refractory multiple myeloma and depemokimab for two indications (chronic rhinosinusitis with nasal polyps or CRSwNP and asthma with type II inflammation) are under review in the United States and some other countries. FDA decisions on all these filings are expected in 2025. Blenrep combinations were approved in the United Kingdom and Japan in April/May 2025.
In 2025, GSK expects to launch five new products/line extensions, including Blenrep, depemokimab (severe asthma and CRSwNP), Nucala for COPD, Penmenvy and Blujepa. Of these, Penmenvy, Blujepa and Nucala for COPD are already approved in the United States.
GSK's Vaccine Sales Slowing Down
GSK's first-quarter Vaccine sales declined 6% due to lower sales of its RSV vaccine, Arexvy, and shingles vaccine, Shingrix.
U.S. sales of Shingrix declined 21% in the first quarter of 2025 due to lower demand as a result of challenges in activating harder-to-reach consumers. Arexvy's global sales declined 57% in the first quarter.
Revised recommendations for RSV vaccinations issued in June 2024 by the U.S. Advisory Committee on Immunization Practices (ACIP) have been hurting sales of Arexvy from the second half of 2024 in the United States. In June, the ACIP recommended the use of Arexvy for all adults aged 75 and above. However, for adults aged 60-74, the ACIP recommended the vaccine only for those who are at increased risk of severe RSV disease.
A challenging macro environment in China and potential for changes in vaccination policies in the United States are expected to hurt Vaccine sales in the near term. In 2025, the company expects sales in the Vaccines segment to decline by a low single-digit percentage at CER.
GSK's Price Performance, Valuation & Estimate Movement
GSK stock has risen 20.1% year to date compared with an increase of 4.0% for the industry. The stock has also outperformed the sector and the S&P 500 index, as seen in the chart below. The stock has also been trading above 200 and 50-day moving averages since May.
GSK Stock Outperforms Industry, Sector and S&P
GSK's stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company's shares currently trade at 8.63 on a forward 12-month basis, lower than 15.63 for the industry. The stock also trades below its 5-year mean of 10.25. The stock is much cheaper than several other large drugmakers like Eli Lilly LLY, Novo Nordisk NVO, AbbVie ABBV and AstraZeneca.
GSK Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings has risen from $4.26 to $4.42 per share for 2025 and from $4.71 to $4.82 per share for 2026 over the past 60 days.
GSK's Estimates
Stay Invested in GSK Stock
GSK has its share of problems. Competitive pressure on HIV and respiratory drugs has risen. The dolutegravir HIV franchise patent expires in the 2028-2029 period, and U.S. vaccine sales are slowing down. In 2025, GSK also expects a negative sales impact of £400-500 million due to the impact of the IRA Medicare Part D redesign.
However, the company is consistently growing its sales and profits, mainly driven by its Specialty Medicines segment.
For the five-year period till 2026, GSK expects to record more than 7% sales growth while core operating profit is expected to increase more than 11% on a CAGR basis. In this period, Specialty Medicines is expected to rise in the low-to-mid teens percentage while General Medicines is expected to rise by a low single-digit percentage. The growth in Specialty Medicines and improvement in General Medicines are making up for a slowdown in the Vaccines unit.
The company also resolved the vast majority of Zantac litigations in 2024, which had long been an overhang on the stock. GSK believes it is well-positioned to navigate and mitigate the potential financial impact of tariffs on pharmaceutical imports through supply chain and increased productivity initiatives
We suggest investors who own this Zacks Rank #3 (Hold) stock stay invested for now, considering steady sales and profit improvement in the coming years. Consistently rising estimates also reflect analysts' optimistic outlook for future growth in profits. Buying the stock at its present cheap valuation can prove prudent for long-term investors who are interested in buying blue-chip companies. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GSK PLC Sponsored ADR (GSK): Free Stock Analysis Report
Novo Nordisk A/S (NVO): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Canada News.Net

2 hours ago

• Canada News.Net

Argentina's hospitals are overwhelmed as Milei slashes healthcare funding

BUENOS AIRES, Argentina: Since taking office in December 2023, Argentine President Javier Milei has implemented sweeping austerity measures that have gutted the nation's once-proud public health system. Known for providing nearly universal free health care, Argentina now faces a public health crisis marked by drug shortages, layoffs, disease outbreaks, and overwhelmed hospitals. Milei's government slashed the national health care budget by 48 percent in real terms and fired over 2,000 Health Ministry workers — 1,400 in just a few days in January. These drastic moves were part of Milei's broader plan to shrink the state and remake Argentina's debt-ridden economy. But the consequences have been swift and devastating for millions of Argentines. Among the most dramatic cutbacks was the dismantling of the National Cancer Institute, which halted early detection programs for breast and cervical cancer. Funding was also frozen for immunization campaigns, severely disrupting vaccine access during Argentina's first measles outbreak in decades. The National Directorate for HIV, Hepatitis, and Tuberculosis lost 40 percent of its staff and 76 percent of its budget, delaying diagnosis and treatment across the country. Emergency contraception and abortion pill distribution have also stopped. María Fernanda Boriotti, president of Argentina's Federation of Health Professionals, described the situation as a health care collapse: "HIV patients without treatment, cancer patients dying for lack of medication, hospitals without resources, health professionals pushed out of the system." Prescription drug prices and private health insurance premiums have surged by 250 percent and 118 percent, respectively, according to official data. Retirees and unemployed citizens, stripped of state-supported plans, now face impossible medical costs. Susana Pecora, 71, said she stopped buying basic groceries to afford her husband's antipsychotic drugs after their plan was canceled. Though Milei campaigned on promises to replace public health care with a U.S.-style insurance system eventually, he hasn't enacted that switch formally. Yet by stripping away services and raising out-of-pocket costs, critics say he's moving Argentina toward that very model. "If you lose your job or get sick, you may have to sell everything to survive," warned Macarena Sabin Paz of the Center for Legal and Social Studies. Milei has aligned closely with U.S. President Donald Trump, pulling Argentina out of the World Health Organization and hosting U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. Health Minister Mario Lugones even pledged to reform Argentina's health system in line with Kennedy's "Make America Healthy Again" movement. The fallout has been grim. Argentina's once-lauded childhood immunization program has faltered. This April, the country reported its first measles death in 20 years. Renowned U.S. virologist Dr. Stanley Plotkin called it "an abandonment of public health." Free public hospitals are struggling to cope. In Buenos Aires, demand for care rose by up to 30 percent in early 2025. At La Plata's Rodolfo Rossi Hospital, patients waited hours for basic medications, only to be turned away due to shortages. Pharmacists blame frozen budgets and administrative chaos. Silvana Mansilla, 43, left empty-handed after waiting half a day for thyroid medicine that has doubled in cost to US$22. "Where's the government?" she asked. Doctors are overwhelmed. Hiring freezes have left them covering twice the patient load. At Garrahan Pediatric Hospital in Buenos Aires, 200 professionals have quit since Milei took office, many fleeing to private hospitals or abroad. A May strike by medical residents revealed 70-hour workweeks for $700 a month — wages that have lost half their value due to nearly 200 percent annual inflation. Perhaps the most heartbreaking impact is seen among cancer patients. The government's abrupt closure of DADSE, a federal agency that supplied free cancer drugs, left over 1,500 patients without treatment. More than 60 have since died. A federal judge ordered drug deliveries reinstated, but the government appealed, saying DADSE no longer exists and promising a new system, which has failed to deliver consistently. Desperate patients have turned to underground Facebook groups, where those with leftover medications donate them to others. The groups are constantly shut down for violating platform rules, but always reappear. For patients like Ariel Wagener, a pizza chef with leukemia, this black-market network became a lifeline. After losing access to his $21,000-per-month medication, he was hospitalized with kidney failure. His health improved only after receiving donated drugs from a deceased patient's family. Others weren't so lucky. Alexis Almirón, 22, needed immediate cancer treatment in December. His request reached the government drug bank the day after Milei's inauguration. Months passed with no medicine. His cancer spread rapidly, and he died in March. His mother received a call the day after his funeral: the drugs had finally arrived. "They didn't give him the chance to choose to live," she said. As the health care system unravels, many fear Argentina is trading universal care for a cruel experiment in radical libertarianism — one where survival depends on charity, not policy.

Globe and Mail

2 hours ago

• Globe and Mail

3 ‘Strong Buy' Quantum Computing Stocks to Buy Now, 6/20/25, According to Top Analysts

Quantum computing, though still in its early stages, is expected to be the next big revolution after artificial intelligence (AI). This emerging technology can tackle complex problems more quickly than traditional computers due to its ability to process information using quantum bits (qubits) instead of regular bits. Thus, investing in quantum computing stocks could give long-term investors a chance to benefit from new technology and market growth. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter To find such stocks, take a look at TipRanks' Quantum Computing Stocks page. It allows you to compare stocks based on analyst consensus, price targets, and key technical indicators, among others. Today, we've selected stocks with 'Strong Buy' ratings from Wall Street analysts. Here are today's top quantum computing stock picks. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio. Rigetti Computing (RGTI) – Rigetti Computing's future lies in its hybrid quantum-classical systems, which aim to speed up progress in areas like pharma and finance by solving complex computing problems. The company recently completed a $350 million equity offering, with the proceeds set to support its quantum computing expansion plans. Overall, the analyst consensus on the stock is Strong Buy, and its average price target of $15.00 implies an upside of 32.16%. Nvidia (NVDA) – Nvidia is making big moves in quantum computing with its ABCI-Q supercomputer, the largest quantum research system. Also, it is setting up a quantum research hub in Boston, working with Harvard and MIT to improve quantum error correction and hybrid computing. Overall, the analyst consensus on the stock is Strong Buy, and its average price target of $173.19 implies an upside of 19.05%. IonQ (IONQ) – IonQ's advanced trapped-ion technology helps solve complex problems more efficiently than classical computers. To speed up quantum system development, the company recently announced a $1.065 billion acquisition of UK-based Oxford Ionics. Earlier this year, IonQ also unveiled plans to raise $500 million to support its ongoing R&D initiatives. Overall, the analyst consensus on the stock is Strong Buy, and its average price target of $43.00 implies an upside of 8.86%.

CTV News

7 hours ago

• CTV News

U.K. warning reignites concerns over using weight-loss drugs while on birth control

A recent warning from the United Kingdom's drug regulator has renewed questions about whether popular weight-loss and diabetes medications could reduce the effectiveness of hormonal birth control. The U.K.'s Medicines and Healthcare products Regulatory Agency (MHRA) issued an alert on June 5 about pregnancies among users of medications such as Ozempic, Wegovy and Mounjaro, sometimes referred to as 'skinny jabs.' 'Women taking popular medicines for weight loss and diabetes… are being reminded to use effective contraception while taking these medicines,' the guidance said. Ozempic and Wegovy, which both contain semaglutide, and Mounjaro, which contains tirzepatide, are part of a class of medications known as GLP-1 receptor agonists. These drugs mimic gut hormones to increase insulin production, slow digestion and suppress appetite. 'These medications delay the absorption of food, so they may also delay or reduce the absorption of the birth control pill,' Dr. Togas Tulandi, chief of obstetrics and gynecology at McGill University Health Centre said in a video interview with CTV Tulandi noted that non-oral methods, such as intrauterine devices (IUDs) or implants, are not affected by weight-loss drugs and remain effective. The MHRA also advises people using the pill to use a barrier method, such as condoms- , reiterating that these medications should not be taken during pregnancy, while trying to conceive or while breastfeeding, due to limited safety data. 'Anyone who gets pregnant while using them should speak to their healthcare professional and stop the medicine as soon as possible,' the MHRA said. Although this is the first formal warning of its kind in the U.K., the issue has been circulating in online communities and medical circles. Some women shared surprise emergencies on platforms like TikTok and Reddit using the hashtag #OzempicBaby — with some saying it happened despite using the pill, and others linking increased fertility to weight loss or improved hormone regulation. While widely promoted online for weight loss, not all GLP-1 drugs are approved for that use. In Canada, Ozempic and Mounjaro are approved for Type 2 diabetes in adults with obesity or related conditions, and Wegovy for weight management. Health Canada told CTV in a statement that the U.K.'s alert is consistent with existing guidance in Canada. 'All Canadian product monographs for GLP-1 receptor agonists advise against using these drugs during pregnancy, and many include warnings about potential interactions with oral contraceptives,' it said. Health Canada says it continues to monitor the safety of health products and will take action if new issues arise. Novo Nordisk, the maker of Ozempic and Wegovy, says no clinically relevant interactions have been found between semaglutide and oral contraceptives containing ethinylestradiol and levonorgestrel. However, the company still recommends patients discontinue use if they become pregnant or plan to conceive. 'Patient safety is a top priority for Novo Nordisk, and we work closely with authorities and regulatory bodies worldwide to continuously monitor the safety and efficacy of our products,' company spokesperson Marie-Pier Burelle said in a statement to Tulandi advises people hoping to conceive to ideally focus on weight loss first, then stop the medication and try to become pregnant. He also pointed to a lesser-known safety issue. 'If you're taking this type of medication and you're undergoing surgery, you should stop it at least two weeks before, because (while you take these medications) food absorption is delayed and when you undergo surgery, the food might still be in the stomach,' he said. Failing to pause the medication could increase the risk of aspiration, where food enters the lungs. He said some patients have had surgeries cancelled as a result.