GSK Sees Strong Demand For Vaccines and Asthma Drugs, Raises Annual Outlook

Wednesday, GSK Plc GSK reported first-quarter sales of $9.33 billion (7.4 billion Sterling Pounds), up 10% Y/Y and 13% excluding COVID.

Vaccines’ sales increased 16% at constant currency to 2.28 billion Pounds, reflecting U.S. demand for Arexvy and strong market growth for Shingrix in International and European markets.  

Shingrix sales reached 945 million Pounds, up 18% at constant currency, with Arexvy sales of 182 million Pounds.

Specialty Medicine sales increased 17% to 2.5 billion pounds, reflecting continued growth across disease areas, with strong performance in HIV, respiratory/immunology, and oncology.

HIV drug revenues increased 14% to 1.6 billion Pounds. General Medicines sales rose marginally by 1% to 2.6 billion pounds. Trelegy (asthma drug) sales reached 0.6 billion Pounds, up 33%.

The company reported core EPS of $0.91 (43.1 pence), up 28% on a constant currency and 16% on a reported basis.

The company said 2024 started strongly, with business momentum across all product areas, particularly in Vaccines and Specialty Medicines, including sales contributions from newly launched vaccines and medicines Arexvy and Ojjaara, respectively. General Medicines, particularly Trelegy, also performed better than expected.

Citing GSK CEO Emma Walmsley, the Financial Times noted, “Welcoming positive late-stage trials for gonorrhea, long-acting HIV and cancer drugs, the company had “strengthened prospects for growth in all of our key therapeutic areas this quarter: infectious diseases, HIV, respiratory [and] immunology and oncology.”  

Guidance: GSK expects 2024 adjusted EPS growth of 8% to 10%, up from the 6%-9% growth previously forecast. It expects 2024 sales to grow in the upper end of its 5% to 7% forecast range.

The company forecasts 2024 core operating profit to increase of 9%-11% versus prior guidance of 7%-10% growth.

GSK noted, however, that sales would grow faster in the first half.

“In particular, the second half of 2024, compared to the same period in the prior year, is expected to be influenced by the 2023 launch dynamics and initial channel inventory build attributable to Arexvy. In addition, we expect the majority of Shingrix sales in China in to be in the first half,” it said in a statement.

Last week, GSK filed a lawsuit in Delaware federal court against Pfizer Inc. PFE and BioNTech SE BNTX, alleging patent infringement concerning the mRNA technology used in the COVID-19 vaccines. 

Price Action: GSK shares are up 2.22% at $42.39 at the last check Wednesday.

Photo via Wikimedia Commons