Glaxo Reports Double-Digit Growth In Q3 Pharma, Vaccine Sales, Updates FY21 Guidance

GlaxoSmithKline Plc's GSK turnover was £9.07 billion in Q3, up 5% Y/Y (actual exchange rate AER), 10% (constant exchange rate CER).
Pharmaceuticals sales reached £4.4 billion, up 5% AER, 10% CER. Sales of Xevudy, the COVID-19 monoclonal antibody treatment, and contributed approximately 3 percentage points to total Pharmaceuticals growth.
COVID-19 solutions sales £209 million including Xevudy £114 million and pandemic adjuvant £94 million.
Vaccines sales grew 7% AER, 13% CER to £2.2 billion, primarily driven by higher Shingrix sales in the U.S. and Europe and pandemic adjuvant sales.
Vaccines turnover excluding pandemic vaccines grew 2% AER, 8% CER to £2.2 billion.
Adjusted operating margin of 31.7% is 0.8 percentage points higher at AER and 1.5 percentage points higher on a CER basis than Q3 2020.
Adjusted EPS was 36.6p, up 3% AER, 10% CER.
The net cash flow from operations was £2.6 billion. The free cash outflow was £1.2 billion.
Outlook: GlaxoSmithKline expects the 2021 adjusted EPS outlook to decline between 2% to 4% at CER, against a previously mid-to-high single-digit decline.
GSK reconfirms a meaningful improvement in revenues and margins in 2022.
Price Action: GSK shares are up 0.31% at $40.31 during the market session on the last check Wednesday.

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