GSK saw a 6% year-on-year earnings growth with a core operating profit margin of 32.9%, beating last year by 180 basis points. The company’s full-year guidance has been refreshed to be “towards the top end of the range.” Specialty medicines now make up 40% of total revenue, with strong growth from products in respiratory, immunology, oncology, and HIV portfolios.

Despite a delayed decision from US reviewers on Blenrep, GSK maintains fair value estimates of GBX 2,200 per local share class and $58 per US ADR. The company believes shares are undervalued and sees pipeline development and new product launches as key to driving share price gains. Management is prepared for the impact of US tariffs on European imports, expecting a minor hit to gross margins initially.

Upcoming US regulatory decisions include Blenrep’s application in second-line multiple myeloma on Oct. 23 and depimokimab’s application in severe asthma by the end of the year. Morningstar’s Equity Research maintains a positive outlook on GSK’s growth potential and stock performance.

Read more at Morningstar: Strong Start to the Year Driven by Growth in Specialty Medicines