RBC Tweaks Model for GSK After 'Mixed' Q3 Results

03:35 AM EDT, 10/29/2026 (MT Newswires) -- RBC Capital Markets revised its model for GSK (GSK.L), updating earnings estimates to account for recent trends and the British drugmaker's third-quarter results. "Overall, we thought the quarter was mixed, the key debate following the 3Q26 call centered on why Q4M pharmacokinetic data for EXTEND, 3x-yearly long-acting injectable HIV PrEP candidate (intramuscular cabotegravir), was not yet disclosed despite being in-house. However, in our follow-up call, management provided a more reassuring explanation. They clarified the timing reflects patient metabolism variability rather than a formulation issue. Specifically, patients took slightly longer to reach steady-state drug levels, with the last patients only recently hitting the month-13+ protocol endpoint," analysts said Wednesday, adding that Cuatro's "different" 11-month virological endpoint offers "no structural read-through." GSK's third-quarter turnover reached 8.89 billion pounds sterling, up 4% on an actual exchange rate basis and 5% at constant currency. Meanwhile, total operating profit dropped to 2.13 billion pounds, down 18% as reported and 16% on a constant-currency basis, weighed down by a restructuring charge under the Accelerate Growth initiative and reduced net other operating income, partly offset by core operating profit growth. As such, the research firm trimmed the sector perform-rated stock's price target to 19.25 pounds from 19.75 pounds. RBC also made cuts to its full-year 2026 to 2028 revenue projections and its diluted operating EPS estimates for the same period. Analysts expect key fourth-quarter catalysts to include the phase 3 Ocean trial readout for Exdensur in eosinophilic granulomatosis with polyangiitis and the phase 2b Q3M data readout for cabotegravir in HIV treatment.