Shares in GSK slid on Wednesday, making it the biggest faller on the FTSE 100, despite the UK drugmaker reporting better-than-expected financial results for the third quarter. Investors were unnerved by weaker vaccine sales, £318m in restructuring charges and the overall outlook, including a looming patent cliff for its blockbuster HIV drug dolutegravir.
Britain’s second-biggest pharmaceutical company reported a 19% decline in pre-tax profit to £1.9bn in the July to September quarter and £318m of restructuring charges, with more to come. Shares dived as much as 7% at one point before paring to a 5.5% drop.
Turnover in the third quarter rose 5% at constant currency rates to £8.9bn, driven by strong sales of HIV, cancer and lupus medications. However, vaccine sales dipped 2% to £2.6bn, with sharp declines for the shingles shot Shingrix (down 5%) and the RSV vaccine Arexvy (down 24%). Sales of meningitis vaccines rose 12%.
Chief executive Luke Miels, who took over from Emma Walmsley in January, has announced several acquisitions including a £7.9bn US cancer specialist, and a major cost-saving programme in July to speed up drug development. Miels said the company was slightly ahead on its three-year plan to save £1.9bn a year by simplifying operations to invest more in research and development. The restructuring will cost the company £2.4bn, with most charges coming this year and next. The impact on the UK was “relatively limited”, Miels said, with some job cuts at its headquarters in central London affecting support roles. “You never want headquarters to be too big; I want people on the bench in the lab.” GSK is also reorganising its vaccine business in Belgium, where increased use of digital tools and automation is expected to lead to about 1,200 job losses. The country will continue to produce the bulk of its vaccines, the company said.
Investors are also worried about the patent cliff for dolutegravir, which will lose patent protection towards the end of the decade, allowing cheaper generic versions. GSK has set a goal of generating more than £40bn in total annual revenue by 2031 as it rebuilds its cancer business.
The company stuck to its annual forecasts, with R&D spending set to grow faster than sales. It expects to begin 22 late-stage studies of new medications by the end of the year, 18 of which are already under way, focusing on specialty medicines and vaccines. Miels said Shingrix had the “potential to grow next year”, describing it as “a remarkable product”. He pointed to two large studies of the vaccine to assess the reduction of dementia risk and its effects on major adverse cardiovascular events, with first data due in 2029 and 2027 respectively. Both studies could be “transformative” for the shingles vaccine, he added. “We’ve got a lot of studies that show a correlation. We’re trying to demonstrate causation,” Miels said.
Analysis
Why This Matters
- GSK is a major global drugmaker and a bellwether for the UK pharmaceutical sector; its share performance affects pension funds and individual investors.
- The company’s vaccine revenue dip and patent cliff highlight the broader challenge of blockbuster drugs losing exclusivity, a common pressure across the industry.
- The restructuring and R&D shift toward specialty medicines and vaccines will shape GSK’s product pipeline and competitive position for years.
Background
GSK is Britain’s second-largest pharmaceutical company. Luke Miels became chief executive in January 2026, succeeding Emma Walmsley. In July 2026 he announced a major cost-saving programme aimed at simplifying operations and accelerating drug development, alongside several acquisitions including a £7.9bn US cancer specialist. The company employs nearly 67,000 people globally.
Key Perspectives
Luke Miels (GSK CEO): said the restructuring’s impact on the UK was “relatively limited”, with some job cuts in support roles at the London headquarters. He argued that headquarters should not be too big and emphasised getting people into labs. On Shingrix, he called it “a remarkable product” with “potential to grow next year” and said two large studies on dementia and cardiovascular risk could be “transformative” for the vaccine.
Investors: were unnerved by weaker vaccine sales, restructuring charges and the overall outlook. They are also worried about the looming patent cliff for the HIV drug dolutegravir, which will face generic competition toward the end of the decade.
What to Watch
- First data from the Shingrix cardiovascular study is expected in 2027; dementia study data in 2029. Positive results could transform the vaccine’s market.
- The pace of GSK’s cost-saving programme and whether restructuring charges continue to weigh on earnings in the next two quarters.
- Progress on the 22 late-stage studies, particularly in specialty medicines and vaccines, which will determine GSK’s ability to offset the dolutegravir patent cliff.
Checked
12 claims in this story checked against 1 source: 11 supported.
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- SupportedGSK shares fell because of weaker vaccine sales and restructuring costs despite a strong quarter.Business | The Guardian: “Shares in GSK slid on Wednesday despite the UK drugmaker reporting better than expected financial results, as investors were unnerved by weaker vaccine sales, restructuring charges and its overall outlook.”
- SupportedGSK’s third-quarter results beat expectations.Business | The Guardian: “Shares in GSK slid on Wednesday despite the UK drugmaker reporting better than expected financial results”
- Partly supportedInvestors focused specifically on the Shingrix slump.Business | The Guardian: “investors were unnerved by weaker vaccine sales, restructuring charges and its overall outlook. [...] However, vaccine sales dipped 2% to £2.6bn, with sharp declines for the shingles shot Shingrix, down 5%”
- SupportedDolutegravir is approaching a patent cliff that will allow cheaper generic versions.Business | The Guardian: “Investors are also worried about the looming patent cliff for its blockbuster HIV drug dolutegravir. It will lose patent protection towards the end of the decade, which means other drugmakers can make cheaper, generic versions.”
- SupportedGSK was the biggest faller on the FTSE 100 after its shares fell on Wednesday.Business | The Guardian: “Shares dived as much as 7% at one point on Wednesday, and despite later paring back to a 5.5% drop, it remained the biggest faller on the FTSE 100 index of blue-chip businesses.”
- SupportedGSK reported a 19% decline in pre-tax profit to £1.9bn for July to September.Business | The Guardian: “Britain’s second-biggest pharmaceutical company reported a 19% decline in pre-tax profit to £1.9bn in the July to September quarter”
- SupportedGSK reported £318m in restructuring charges, with more to come.Business | The Guardian: “and £318m of restructuring charges, with more to come.”
- SupportedVaccine sales fell 2% to £2.6bn; Shingrix sales fell 5% and Arexvy sales fell 24%.Business | The Guardian: “vaccine sales dipped 2% to £2.6bn, with sharp declines for the shingles shot Shingrix, down 5%, and the RSV vaccine Arexvy, down 24%”
- SupportedMiels described the UK impact of restructuring as “relatively limited”.Business | The Guardian: “The impact on the UK was “relatively limited,” Miels said”
- SupportedMiels said, “You never want headquarters to be too big; I want people on the bench in the lab.”Business | The Guardian: ““You never want headquarters to be too big; I want people on the bench in the lab.””
- SupportedMiels said Shingrix had the “potential to grow next year” and called it “a remarkable product”.Business | The Guardian: “Miels said Shingrix had the “potential to grow next year”, describing it as “a remarkable product”.”
- SupportedMiels said, “We’ve got a lot of studies that show a correlation. We’re trying to demonstrate causation.”Business | The Guardian: ““We’ve got a lot of studies that show a correlation. We’re trying to demonstrate causation,” Miels said.”