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British pharmaceutical giant GSK has announced its first share buyback programme in over a decade, committing £2 billion to the initiative whilst simultaneously upgrading its long-term sales projections. The FTSE 100 company’s bold move signals growing confidence in its pharmaceutical pipeline following its transformation into a standalone biopharma enterprise.
The company has revised its 2031 revenue outlook to exceed £40 billion, marking a £7 billion increase from projections made four years ago, before the separation of its consumer healthcare business, Haleon. This optimistic forecast stems from significant progress in late-stage drug development, with 19 products currently in phase III or registration stages.
Dame Emma Walmsley, GSK’s Chief Executive, emphasised the company’s transformed position regarding operational performance and balance sheet strength. The unexpected share buyback programme, scheduled to run over 18 months, accompanies a 61p per share full-year dividend.
Total sales for 2024 reached £31.4 signal, representing a 7% growth at constant currencies. Strong performance in HIV, oncology, and speciality medicines offset a 4% decline in vaccine sales, including a notable 51% drop in Arexvy, their respiratory syncytial virus vaccine.
Operating profit experienced a significant decrease, falling by a third to £4 billion, largely attributed to a £1.8 billion charge related to Zantac litigation settlements in the United States. Despite these challenges, GSK maintains an optimistic outlook, projecting revenue growth between 3% and 5% for the coming year.
The market responded positively to these announcements, with GSK shares rising 5.9% on the London Stock Exchange to £14.61, emerging as the day’s strongest performer on the premier share index. The company’s strategic focus on research and development, coupled with its commitment to the UK market, positions it favourably for sustained growth in the competitive global pharmaceutical landscape.
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