- Better than expected Q3 sales and profit growth
- Increased guidance across all business units
- RSV vaccine granted priority FDA review
Biopharma company GSK (GSK) delivered better than expected third quarter sales and profit growth, prompting the company to increase full-year guidance again.
The positive update was well received with the shares gaining 1.7% to £14.70, leaving them down around 7% year-to-date compared with a 3.5% fall in the FTSE 100.
Revenues to 30 September were up 9% in constant currencies to £7.8 billion, around 8% ahead of analysts’ expectations while adjusted operating profit grew 4% year-on-year to £2.6 billion, which was materially ahead of what the market anticipated.
VACCINES/SPECIALITY MEDICINES SHINE
The vaccines division grew revenues by 9% to £2.5 billion while speciality medicines revenues were 24% ahead to £2.7 billion.
Within vaccines shingles drug Shingrix continued its strong growth, with sales up 36% in constant currencies while the HIV franchise saw revenues up 7% to £1.5 billion helped by a strong launch of its long lasting injectable
The company said it expected ‘strong double-digit growth and record annual sales’ for Shingrix in 2022, based on strong demand in existing markets and continued geographical expansion.
INCREASED GUIDANCE
Excluding contributions from Covid-19 solutions GSK now expects full year revenues to grow between 8% and 10% from 6%-to- 8% and adjusted operating profit growth of between 15% and 17% from 13%-to-15%.
Adjusted earnings per share growth is anticipated to be between 14% and 16% from the prior 12%-to-14% range.
CEO Emma Walmsley commented: ‘We are again raising our full-year guidance and expect good momentum in 2023, further strengthening our confidence in our performance outlooks, driven by Shingrix global expansion and expected new launches including our new RSV (respiratory syncytial virus) vaccine.
‘We are also making good progress to strengthen our early-stage pipeline and will continue to invest in targeted business development to build optionality and support growth in the second half of the decade.’
GSK expects to pay a dividend per share of 13.75p for the third and final quarters of 2022 and a 2023 dividend of 56.5p per new ordinary share following the share consolidation related to the demerger of consumer healthcare company Haleon (HLN).
RSV MOMENTUM
In a separate announcement today GSK said the US Food and Drug Administration had granted a priority review for its RSV vaccine candidate following acceptance of regulatory submissions in Europe and Japan.
RSV remains one of the few major infectious diseases without an approved vaccine.
Respiratory syncytial virus is a common contagious virus which attacks the lungs and breathing passages. Older patients with pre-existing medical conditions are particularly at risk.
Analysts at investment bank Berenberg believe the strong efficacy of GSK’s RSV vaccine puts the company in a leading position in the race to secure a stake in the circa $5 billion older-adult RSV vaccine market.
