GSK's Specialty Medicines Surge - Still Looks Undervalued In 2025

Summary

• GSK specialty medicines grew YoY in Q1 2025. In fact, it's now their main profit engine, offsetting the weakness in their vaccine segment.
• Similarly, the company's oncology, HIV, and respiratory biologics, plus the upcoming Blenrep FDA decision, could translate into additional near-term revenue catalysts.
• In my view, GSK's valuation multiples remain attractive and well below those of its peers—which is surprising, given its potential to generate over $40 billion in specialty medicines revenue by 2031.
• I concede there are still regulatory and headline risks to consider, like the recent ACIP vaccine guidance and Senate probe over Flovent withdrawal.
• On balance, the firm's dividend yield compensates investors nicely for waiting to see its potential in specialty medicines unfold.

x-reflexnaja/iStock via Getty Images

GSK plc (NYSE:GSK) is a well-known biopharmaceutical company that develops specialty and general drugs, as well as vaccines. Their Q1 2025 results showed good momentum, particularly in the specialty medicines segment. GSK's oncology performance was excellent, but other specialty areas, including

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.