- Q1 sales and profit beat expectations
- Full year guidance reaffirmed
- Strong pipeline of new drugs
Global biopharma company GSK (GSK) beat market expectations for first quarter sales and profit on Wednesday (26 Apr) driven by strong growth in vaccines.
Sales for the three months to 31 March excluding Covid-10 solutions grew 10% year on year to £6.95 billion compared with £6.5 billion penciled in by analysts.
A key driver of growth was the company’s shingles vaccine Shingrix with sales up 11% in constant currencies to £833 million, on geographical expansion and market growth.
Meningitis vaccine Bexsero grew 25% in constant currencies to £280 million reflecting strong new launch uptake and favourable pricing mix.
Adjusted EPS (earnings per share) was up 7% in constant currencies some 11% higher than company-complied consensus estimates.
On a reported basis EPS fell 8% reflecting an unfavourable comparison due to upfront income received from the settlement with Gilead in the first quarter of 2022.
The shares dipped 0.8% to £14.87 against a weak stock market backdrop and are up around 2% for the year.
WHAT DID THE COMPANY SAY?
CEO Emma Walmsley commented: ‘We have made a strong start to 2023, with excellent performance across Vaccines, Specialty and General Medicines.
‘We are very focused on our upcoming launches, including our potential RSV older adult vaccine, and on continuing to strengthen our pipeline – both organically with several positive late-stage read-outs already this year, and through targeted business development.’
Looking forward the company reaffirmed 2023 guidance which calls for revenue to increase between 6% to 8%, adjusted operating profit growth of 10% to 12% and EPS to be ahead by between 12% and 15%.
Adjusted operating profit is now expected to be lower in the first half and higher in the second. The company declared a first quarter dividend of 14p per share and confirmed a full year pay-out of 56.5p per share.
GSK has a pipeline of 58 vaccines and specialty medicines under development with 17 in late-stage trials and four expected to be approved in 2023.
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