Shore Capital has reiterated its ‘buy’ rating on GSK PLC (LSE:GSK, NYSE:GSK), highlighting the strength of its speciality medicines business as the driving force behind future growth.
Despite challenges in the vaccines segment, the investment bank believes GSK remains well-positioned to meet its post-demerger growth targets.
According to ShoreCap, speciality medicines are set to contribute over half of GSK’s forecast £40 billion in revenue by 2031.
This division includes treatments for respiratory conditions, oncology, and HIV, with anticipated approvals in 2025 for key drugs such as Blenrep, a multiple myeloma treatment, and depemokimab, a long-acting asthma drug.
GSK has previously indicated that these medicines could each generate peak yearly sales of over £3 billion, though current market forecasts are significantly below this level.
While vaccines have been a sore spot, with expectations for a low single-digit decline in sales for 2025, GSK has raised its long-term revenue outlook, and Shore Capital sees valuation opportunities in its shares.
In afternoon trading, the stock was flat at 1,430.5p.