GSK reported strong Q1 2026 results driven by specialty medicines and vaccine growth, with management emphasizing pipeline acceleration, strategic acquisitions, and disciplined capital allocation while maintaining full-year guidance despite near-term headwinds in certain segments.

### Key Financial Results

**Sales grew 5% to £7.6 billion** in Q1 2026, with growth driven by Specialty Medicines up 14% and vaccines contributing through strong Shingrix sales.

**Core operating profit grew 10%** and **EPS was up 9%** in the quarter.

**Gross margin improved 110 basis points** due to the growth of Specialty and Shingrix benefiting product mix.

**Cash generation was strong at £1.4 billion**, with CGFO slightly ahead of last year despite adverse currency impacts.

**Q1 dividend declared was £0.17 per share**.

### Business Segment Results

**Specialty Medicines grew 14%**, representing the primary growth driver for the quarter.

**Shingrix delivered record quarterly sales of more than £1 billion, up 20%**, with European sales up 51% following uptake in national immunization programs and US sales up 12% driven by inventory movements and the new prefilled syringe launch.

**Jemperli delivered £232 million, up 40%**, driven by significant overall survival benefit in endometrial cancer with 66% reduction in risk of death for dMMR/MSI-High patients.

**Nucala delivered double-digit growth** following expansion into COPD in the US, with total brand new patient starts growing 65% year-on-year and approximately 45% market share in COPD.

**General Medicines was down 6%** in the quarter, driven by declining sales of the older established portfolio, with Trelegy growth limited by increasing copay requirements due to Medicare redesign.

**HIV sales grew 10%** with double-digit growth driven by the long-acting portfolio in Dovato, with US sales growing 15% and market share outpacing competition.

**Cabenuva grew 31%** in Q1 fueled by patient demand, with accelerated switches from competitor products reaching 79% in the US.

**Apretude grew 44%** in the quarter, reinforcing the importance of the more than 99% effective single-shot long-acting injectable for HIV prevention.

### Capital Allocation

**Share buyback is on track to be completed at the half year**, with shareholder returns totaling over £0.9 billion in the period.

**Net debt at 1.4 times EBITDA**, supported by strong cash generation and strategic actions.

**BD investments primarily comprised £1.4 billion upfront to acquire RAPT Therapeutics**.

**Expected Q2 outflow of $950 million for the acquisition of 35Pharma**, a potential best-in-class activin signaling inhibitor for pulmonary hypertension.

**Portfolio optimization generating cash income to reinvest**, including the ViiV special dividend of $250 million, divestment of the Rockville manufacturing site, and out-licensing of linerixibat for $400 million.

**Transactions will positively impact net debt by $1.2 billion in the first half**.

### Industry Trends and Dynamics

**Severe asthma represents significant opportunity with only 30% of eligible patients receiving a biologic**, with Exdensur's ultra-long acting dosing showing 97% of patients preferring six-monthly dosing versus current options.

**COPD market shows strong demand with approximately 100 million people living with COPD globally**, with Nucala capturing around 1 in 2 new patients in China representing strong early launch signals.

**HIV treatment market accounts for around 90% of the total HIV market**, with approximately 85% of people globally on integrase inhibitor-based regimens.

**Hepatitis B represents a significant unmet need with 57 million infected in China but only 16 million diagnosed**, with much greater usage of pegylated interferon in China.

**Discontinuation rates for short-acting biologics in respiratory are approximately 65% in the first 12 months**, with compliance and frequent dosing requirements being significant factors.

### Competitive Landscape

**Nucala achieved approximately 45% market share in COPD** with strong momentum and new patient starts growing 65% year-on-year.

**Jemperli demonstrated competitive advantage through overall survival benefit**, with data showing 66% reduction in risk of death for dMMR/MSI-High endometrial cancer patients.

**Blenrep differentiated by community-ready administration with 70% of patients in the community**, where accessibility to competitor options remains a challenge.

**HIV portfolio transition to INSTI-led long-acting regimens** with more than 70% of HIV growth and more than one-third of total US sales from these regimens.

**Once-weekly oral HIV treatment option expected from competitors this year**, though management believes long-acting injectables target a specific patient segment and will not be significantly impacted.

**Approximately 60% of oncologists use KEYTRUDA for endometrial cancer despite Jemperli's overall survival benefit**, indicating significant opportunity for market share gains.

### Macroeconomic Environment

**Adverse currency impacts partially masked strong cash generation** in Q1.

**Medicare redesign creating pronounced copay requirements** particularly in Q1 for respiratory products like Trelegy, expected to be less relevant in the rest of the year.

**ADAP program facing budget pressures with states restricting formularies**, including Florida's recent restrictions on BIKTARVY and DESCOVY, though a court case reversed threshold reductions.

### Growth Opportunities and Strategies

**Pipeline acceleration through aggressive prosecution of opportunities** with seven phase III trials started in 2025 and 10 more starting in 2026.

**ADC portfolio expansion with ris-rez (B7-H3 ADC) in small cell lung cancer** with EMBOLD-SCLC-301 recruiting well and planned expansion to genitourinary cancers.

**Mo-rez (B7-H4 ADC) showing encouraging anti-tumor activity** with confirmed ORR of 62% in platinum-resistant ovarian cancer and 67% in advanced endometrial cancer, with five pivotal trials planned to start this year.

**Efimosfermin in MASH with two pivotal studies (ZENITH-1 and ZENITH-2) started and recruiting well**, with NEBULA program for advanced MASH on track to start later this year.

**Bepirovirsen (bepi) for chronic hepatitis B showing positive phase III data** with statistically significant and clinically meaningful increase in functional cure rate, with Breakthrough Designation in the US and PDUFA date of October 26.

**Three times yearly Cabenuva for HIV treatment** with CUATRO phase III registrational study on track and expected launch in 2028.

**Three times yearly Apretude for HIV PrEP** with registrational study data anticipated in H2 2026 and H1 2027 launch.

**Twice yearly long-acting injectable HIV treatment** with VH184 (third-generation INSTI) and VH499 (capsid inhibitor) showing promising potential, on track to launch by end of decade.

**Exdensur expansion in severe asthma** with J code expected early July, after which access is expected to be unrestricted, currently with only 20% of commercial patients having access.

**Nucala COPD expansion outside the US** including Europe and China with similar strong initial signals.

**Blenrep expansion with second-line approval in 19 markets** and launches progressing in major markets including UK, Germany, and Japan.

**Acquisitions of ozureprubart in food allergies and HS235 in pulmonary hypertension** both with clinically validated mechanisms of action and potential to be best-in-class.

**Shingrix dementia study with approximately 30,000 individuals** in Shingrix versus placebo with three-year follow-up through registry basis.

### Pipeline and R&D Strategy

**Camlipixant in refractory chronic cough** with CALM-2 data expected mid-year, with 15% to 20% reduction relative to placebo at 24 weeks considered significant.

**Velzatinib in GIST** with StrateGIST 3 phase III trial for second-line started less than 12 months after asset acquisition, with second phase III trial in first-line population starting in second half.

**Four further phase III readouts expected in second half** for Jemperli in rectal cancer, camlipixant in refractory chronic cough, Exdensur in EGPA, and three times yearly PrEP for HIV.

**R&D spend driven by accelerated investment in pipeline** including efimosfermin and velzatinib pivotal trials, with continued investment as multiple late-stage trials initiate across Specialty portfolio.

### Financial Guidance and Outlook

**Full year guidance confirmed** with expectations for another year of profitable growth.

**Vaccines growth in Q1 benefited from US Shingrix pre-filled syringe stocking**, with annualization of publicly funded programs in Japan and certain EU countries beginning in Q2.

**GenMed growth expected to be half two weighted**, with Q2 facing tough comparators due to prior year true-up benefits and international markets expected to remain challenging.

**Operating profit growth expected to be predominantly half two weighted** given phasing of productivity benefits and comping the RSV IP settlement received in Q2 last year.

**Target of more than £10 billion of CGFO** with cash flows weighted as normal towards second half.

**Q2 results will include comprehensive portfolio and pipeline update** instead of separate HIV-only event in June, with discussion of mid-term and longer-term opportunities.

**Shingrix penetration opportunities remain with around 11% of eligible population immunized** in top ten markets outside the US.

**Trelegy expected to face tougher comparators in Q2** due to prior year true-up benefits.