GSK Lifts Annual Outlook After Robust Vaccines, Specialty Medicine Sales In Q3

GSK Lifts Annual Outlook After Robust Vaccines, Specialty Medicine Sales In Q3
  • GSK Plc's GSK Q3 turnover reached £7.83 billion, up 18% Y/Y on the actual exchange rate (AER) and 9% on a constant exchange rate (CER) basis.
  • Specialty Medicines turnover was £2.7 billion, up 36% AER, and 24% CER, driven by consistent growth in all therapy areas.
  • Excluding sales of Xevudy were £2.34 billion, up 22% at AER, and 11% at CER in the quarter. Sales of Xevudy (sotrovimab) for COVID-19 treatment stood at £411 million.
  • Recently, GSK decided not to progress with regulatory submissions for otilimab, an investigational monoclonal antibody for moderate to severe rheumatoid arthritis, after mixed data from three trials.
  • Also, the FDA's Cardiovascular and Renal Drugs Advisory Committee voted 13 to 3 in favor of GSK's daprodustat for adult dialysis patients with anemia of chronic kidney disease.
  • Vaccines sales reached £2.48 billion, excluding pandemic adjuvant sales, grew 19% at AER and 9% at CER in the third quarter.
  • The performance benefited from the post-pandemic rebound and strong commercial execution of Shingrix in Europe and internationally. MMR/V vaccines supply constraints partially offset vaccine growth, and CDC stockpile borrows.
  • The adjusted operating margin of 33.3% was 1.6% percentage points lower at CER than in Q3 2021.
  • Adjusted EPS was 46.9p compared to 37.4p a year ago.
  • Outlook: GSK raised FY22 sales growth to 8%-10% CER, compared to the previous guidance of 6%-8%.
  • The company forecasts adjusted operating profit to increase by 15%-17% (prior range of 13% - 15%). 
  • Price Action: GSK shares are up 2.33% at $34.24 during the premarket session on the last check Wednesday.
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