GSK's Q3 Earnings Hit By Lower Than Expected Vaccine Sales, Cautions Lower Revenue For 2024

Wednesday, GSK Plc GSK reported third-quarter sales of $10.42 billion (8.01 billion Sterling Pounds), down 2% year-over-year and up 2% on constant currency. The analysts estimated sales of $10.78 billion.

Vaccine sales fell 18% (-15% at constant currency) to 2.65 billion pounds.

Vaccine sales performance was primarily impacted by lower sales of Arexvy with changes in Advisory Committee on Immunization Practices (ACIP) guidelines, prioritization of COVID-19 vaccinations in the quarter, lower seasonal infections, and a tough comparator following launch stocking last year.

Shingrix sales reached 739 million pounds, down 7% at constant currency, with Arexvy sales of 188 million pounds, down 72%.

Also Read: Just After Pfizer’s RSV Vaccine Approval For Younger Adults, GSK Layouts Encouraging Preliminary Data Showing Potential For Use In Larger Population

Specialty Medicine sales increased 14% to 2.97 billion pounds. HIV drug revenues increased by 8% to 1.75 billion pounds.

General Medicines sales rose by 3% to 2.39 billion pounds. The company added General Medicines, including Trelegy, also continued to perform better than expected.

Trelegy (asthma drug) sales reached 600 million pounds, up 12%

The company reported core EPS of $1.29 (49.7 pence), up 5% on a constant currency and down 1% on a reported basis, beating the consensus of $1.23.

“Strong growth in specialty medicines helped to offset lower vaccine sales and reflected successful new product launches in oncology and HIV, ” said Emma Walmsley, CEO.

Guidance: GSK reaffirms 2024 adjusted EPS growth of 10%- 12%, with core operating profit increasing by 11%- 13% and sales expanding by 7% %- 9%.

Vaccine sales are expected to decrease in low-single-digit percent compared to earlier guidance of an increase in low to mid-single-digit percent.

Specialty Medicine revenue is expected to grow at a high teens percent, compared to a prior growth range of mid-to-high teens percent.

General Medicines 2024 sales are forecasted to increase at mid-single digit percent compared to earlier guidance of low to mid-single digit percent.

Price Action: At last check on Wednesday, GSK stock was down 4.69% to $36.38 during the premarket session.

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