GSK faces long-term growth challenges despite recent profit boosts

GSK has faced long-term challenges in delivering significant growth for shareholders. Over a 20-year period since 2006, the share price rose from approximately 1,500p to 1,815p, representing a 21% increase.

Factors contributing to the company's struggle include pipeline disappointments, patent expiries, and high research and development costs, which reached £6.57bn last year. The company also navigated the Haleon demerger in 2022 and faced multi-billion pound Zantac settlement provisions in 2024. While 2024 profits were impacted by these settlements, strong growth in Specialty Medicines and Vaccines helped boost 2025 profits to £7.93bn.

An analysis of a £1,000 investment made three years ago shows a positive performance of 33.86%, with the investment growing to £1,338.56 based on share prices moving from 13.58 GBP to 18.18 GBP. The company's market value is approximately £72.89bn.