New GSK Q2 Highlights: Shingles Vaccine Back In Demand, Antibiotics Recover, Forecast Boost

  • GSK Plc's GSK Q2 turnover reached £6.9 billion, up 19% Y/Y on the actual exchange rate (AER) and 13% on a constant exchange rate (CER) basis.
  • Specialty Medicines turnover was £2.7 billion, up 44% AER, 35% CER, driven by consistent growth in all therapy areas, including sales of Xevudy. 
  • Sales of Xevudy (sotrovimab) for COVID-19 treatment stood at £466 billion.
  • Related: GSK Completes Spin-Off Of Its Consumer Healthcare Business.
  • Vaccines sales benefited from Shingrix's post-pandemic recovery and reached £1.72 billion, up 31% at AER, and 24% at CER, excluding unrepeated 2021 pandemic adjuvant sales. Shingrix generated £731 million in sales.
  • General Medicines sales reached £2.5 billion, up 5% AER and 2% CER reflecting growth from Trelegy and recovery of the antibiotics market. 
  • The adjusted operating margin of 29% is 0.9 percentage points higher at AER and 1.5 percentage points lower on a CER basis than in Q1 2021. reflecting the impact of low margin COVID-19 solutions sales (Xevudy).
  • Adjusted EPS was 34.7p compared to 28.2p a year ago.
  • However, the company's pandemic solutions sales have taken a hit, and GSK said that expected 2022 sales had largely been achieved in the first half of this year.
  • Outlook: GSK raised FY22 sales growth to 6% - 8%, compared to the previous guidance of 5% - 7%, and adjusted operating profit to increase by 13% - 15% (prior 12% - 14%). 
  • Price Action: GSK shares are up 0.66% at $42.80 during the premarket session on the last check Wednesday.
  • Photo via Wikimedia Commons
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