Shares in pharmaceutical giant GSK moved higher on Wednesday, buoyed by a significant regulatory milestone in Europe and the announcement of a fresh capital return initiative. The stock gained approximately 1.1% to reach 2,263 pence, extending a positive run that saw it close at a 52-week high of £22.39 the previous session, outperforming the broader FTSE 100 index.
Regulatory Win for Respiratory Portfolio
The European Commission granted marketing authorization for Exdensur (depemokimab), GSK's biologic treatment for severe asthma with type 2 inflammation and chronic rhinosinusitis with nasal polyps. A key differentiator for the therapy is its dosing schedule, requiring administration just twice per year. Company executives highlighted this as an "innovative ultra-long-acting option," which physicians view as a promising advancement for managing severe respiratory conditions and improving patient adherence.
Shareholder Returns in Focus
Concurrently, GSK activated the fourth tranche of its ongoing £2 billion share buyback program. The company plans to repurchase up to £0.45 billion (450 million pounds) of its own shares, with the program set to conclude by April 24, 2026. The trades will be executed by BNP Paribas under a non-discretionary agreement, a move aimed at returning excess capital to shareholders and reducing the overall share count. Filings revealed the company had already purchased 420,000 shares on Tuesday at prices ranging from 2,189 pence to 2,259 pence, which will be held in treasury.
Vaccine Data and Analyst Sentiment
Beyond the immediate catalysts, GSK released new real-world effectiveness data for its respiratory syncytial virus (RSV) vaccine, Arexvy. A U.S. study involving over 2.5 million adults aged 60 and above indicated the vaccine was 75.6% effective against RSV-related hospitalizations. An accompanying analysis suggested vaccination could also help mitigate the risk of severe cardiovascular events like heart attack and stroke in this population. However, the company noted these observational findings, presented ahead of the RSVVW'26 conference in Rome, do not establish direct causation.
Broker Berenberg responded to the developments by maintaining a Neutral rating on GSK but raising its price target to 2,000 pence, as reported by dpa-AFX.
Market Context and Forward Challenges
The positive momentum reflects GSK's strategic efforts to demonstrate sustainable growth driven by its core pipeline and products, rather than one-off transactions. The dual announcement of a regulatory approval and a buyback serves to reinforce this narrative swiftly. However, the market still awaits evidence of Exdensur's commercial uptake among European healthcare payers and specialists, where it will compete in a crowded market for biologic asthma therapies.
Upcoming Financial Calendar
Investor attention will now turn to near-term corporate events. GSK shares are scheduled to trade ex-dividend on February 19, 2026, meaning new buyers after that date will not receive the upcoming dividend payment. The market will also monitor ongoing buyback disclosures and await the company's first-quarter 2026 financial results, which are slated for announcement on April 29.
Today's movements underscore a period of execution for GSK, balancing pipeline advancement with disciplined capital allocation. The company's ability to convert these regulatory and data successes into sustained commercial performance remains the critical next test for management and a key focus for shareholders.
