Shares in UK drugmaker GSK (GSK) gained 2% after the company confirmed its FY26 guidance. In contrast, shares in Danish drugmaker Novo Nordisk plummeted 18% after the firm predicted a drop in sales in 2026.

GSK share price: £19.85 (+2%)	PE: 14x
Market cap: £78.3bn	Yield: 3.3%

POSITIVE PROGRESS AT GSK

GSK reported an increase in group sales in 2025 helped by a jump in specialty medicines, in particular oncology. Group revenue rose 4% to £32.7 billion with sales of specialty treatments rising 17% to £13.5 billion.

HIV sales rose 11% to £7.7 billion while Respiratory, Immunology and Inflammation sales rose 18% to £3.8 billion. However, the standout performer was Oncology where sales increased 43% to £2 billion.

By comparison, Vaccine sales growth was sluggish at just 2% and General Medicine sales were 1% lower over the year. At the group level, sales saw an acceleration in the fourth quarter with 6% growth vs 4% for the FY.

The firm saw good progress with its drug pipeline, with five treatments approved in the US by the FDA. For 2026, it has two major new products pending approval and five products awaiting final trial results.

CEO Luke Miels said he expected the positive momentum to continue this year. He also confirmed the group’s guidance for sales, operating profit and EPS growth.

TOUGH TIMES FOR NOVO

Danish diabetes and weight-loss drug maker Novo Nordisk posted a 6% increase in sales last year. However, the company forecast a drop of between 5% and 13% in sales in 2026 due to lower prices.

The firm is caught in an intensifying price war in the weight-loss drug market with rivals including Eli Lilly (LLY). Novo makes Ozempic and Wegovy, which are competitors to Lilly’s Mounjaro and Zepbound treatments.

Novo lowered its sales outlook due to lower selling prices related to the “Most Favoured Nations” agreement in the US. It is also facing the patent expiry of the semaglutide molecule in certain markets as well as rising competition.

It’s onwards and upwards for GSK, with five drugs approved in the US last year and more to come. So far this year the shares are up close to 10% against a 4% gain for the FTSE 100.

Part of this may be down to investors seeking ‘safety’ in a volatile market, but GSK also offers growth. Core EPS increased 8% last year and the forecast for this year is more of the same.

Novo on the other hand is in the eye of the storm with little option but to cut prices. In fairness, the CEO signalled price cuts in the Q3 update but the market seems not have paid attention.

The problem is, lower prices may not lead to higher volumes, it may just mean lower prices across the board. Even if volumes do rise, it will be slowly, whereas cutting prices has an instant effect on revenue.

Read the GSK press release here: https://www.gsk.com/en-gb/investors/

Read the Novo Nordisk release here: https://www.novonordisk.com/investors.html