GSK shares dive as weaker vaccine sales and restructuring charges unnerve investors

By the Editorial Team · Thursday, October 29, 2026

GlaxoSmithKline reported a 5% rise in third-quarter revenue to £8.9 billion but saw a 19% drop in pre-tax profit to £1.9 billion due to restructuring costs and weaker vaccine sales, leading to a nearly 5% fall in shares. The company is restructuring operations, including job cuts and plant closures, while betting on specialty medicines growth and ongoing clinical trials to offset challenges like patent expirations and declining vaccine demand.

Shares of GlaxoSmithKline (GSK) fell sharply following the release of its third-quarter financial results, despite the British pharmaceutical company reporting revenue growth ahead of market expectations. The company posted group sales of £8.9 billion for the three months ending September 30, a 5% increase at constant currency rates, driven by strong performances in HIV, oncology, and lupus treatments. However, weaker sales in its vaccine segment, alongside significant restructuring charges and concerns over future patent expirations, weighed on investor sentiment.

GSK's pre-tax profit declined 19% to £1.9 billion in the quarter, partly due to £318 million in restructuring costs associated with a major cost-saving program announced in July. This program aims to save £1.9 billion annually by 2029, primarily through streamlining operations and accelerating drug development. The company has committed to a total restructuring charge of £2.4 billion, most of which will be incurred this year and next.

Shares dropped as much as 7% on the day of the earnings release, eventually closing down nearly 5%, marking the largest decline on the FTSE 100 index. Investors expressed particular concern over the softness in vaccine sales, which fell 2% to £2.6 billion in the quarter. Notably, sales of the shingles vaccine Shingrix declined by 5%, and the respiratory syncytial virus (RSV) vaccine Arexvy dropped 24%, although meningitis vaccine sales increased by 12%. GSK CEO Luke Miels attributed the vaccine downturn to decreasing demand in the U.S. market ahead of the flu season, noting that patients typically receive RSV vaccines alongside flu shots. He emphasized that GSK retained a leading market share against competitors like Pfizer and continued to see strong demand outside the U.S.

GSK is also addressing vaccine production efficiencies, proposing approximately 1,200 job cuts at its Belgian manufacturing facility as it increases automation and digital integration. Additionally, the company plans to close a vaccine plant in Dresden, Germany, next year as part of broader restructuring efforts. These moves coincide with a broader strategy to refocus on specialty medicines and innovation, including establishing a global research and development headquarters in Cambridge with a £400 million investment.

Looking ahead, GSK aims to exceed £40 billion in annual revenue by 2031, with a focus on expanding its oncology franchise, bolstered by acquisitions such as the $10.6 billion purchase of U.S.-based cancer specialist Nuvalent. The company expects to initiate 22 late-stage clinical trials by year-end, more than doubling its previous target, with an emphasis on specialty medicines and vaccines.

While GSK maintained its full-year forecast for revenue growth of 3% to 5% and core operating profit growth of 7% to 9%, market analysts noted that much of the strong earnings momentum was anticipated. Concerns remain over the impact of the impending patent loss for the blockbuster HIV drug dolutegravir by the end of the decade, which may expose GSK to increased generic competition.

Despite these challenges, Miels highlighted the potential for renewed growth in vaccines like Shingrix, pointing to ongoing studies exploring the vaccine’s effects on reducing dementia risk and cardiovascular events, with preliminary data expected in 2027 and 2029. These studies could significantly enhance the product's market profile if positive outcomes are confirmed.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.