Glaxo's Q4 Pharma Sales Jump 20% Boosted By COVID-19 Treatment; Prepares For Spin-Off

GlaxoSmithKline Plc's GSK turnover was £9.53 billion in Q4, up 9% Y/Y (actual exchange rate AER), 13% (constant exchange rate CER).

• Pharmaceuticals sales reached £5.2 billion, up 20% AER, 25% CER, driven by growth in New & Specialty products, partly offset by a decrease in the Established Products portfolio. 
• Sales of sotrovimab, branded Xevudy, for COVID-19 treatment stood at £828 million in Q4.
• Vaccines turnover decreased 10% AER, 7% CER to £1.81 billion, primarily due to lower demand for routine adult vaccination due to the COVID-19 vaccination program.
• Revenue from shingles vaccine Shingrix, a key earnings driver over past quarters, slipped 7% to £597 million.
• Consumer Healthcare turnover in the quarter was £2.5 billion, up 6% AER, 10% CER. 
• Adjusted operating margin of 19.9% is 0.9 percentage points lower at AER and 0.2 percentage points higher on a CER basis than in Q4 2020.
• Adjusted EPS was 25.6p, up 9% AER, 22% CER.
• Outlook: GSK said it expected pandemic-related sales in 2022 to be at similar levels to 2021 but said these would contribute less to profit at "New GSK" due to lower margins on its antibody treatment, knocking off operating profit by 5% to 7%.
• The company said sales in 2022, after the spin-off of its consumer arm, are expected to grow 5% to 7% and adjusted operating profit to increase 12% to 14%. 
• That includes the boost from a settlement with Gilead Sciences Inc GILD but not sales of its COVID-19 products.
• The company is pressing on with the spin-off of its consumer arm after turning down Unilever plc's UL £50 billion buyout offer.
• Price Action: GSK shares are down 1.28% at $44.64 during the premarket session on the last check Wednesday.