GSK raises profit outlook on strong vaccine, HIV drug sales – ET HealthWorld | Pharma

By Eva Matthews and Maggie Fick

LONDON: GSK raised its full-year profit forecast on Wednesday strong demand For this common respiratory vaccine And special hiv drugsHowever, it expects sales growth to slow in the second half.

CEO Emma WalmsleyThe company’s strategy has focused on vaccines, cancer and infectious diseases and a shift in the company’s HIV focus. long term treatment and preventive treatment. This strategy has been successful as GSK is gearing up for 12 launches by 2025.

London-listed pharmaceutical manufacturer The company said it expects annual adjusted earnings per share to grow 8 percent to 10 percent, up from the 6 percent-9 percent growth previously estimated. It expects sales to grow at the upper end of its 5 percent to 7 percent forecast range in 2024.

Like sales of recently launched products respiratory polynuclear virus (RSV) vaccine Erexvi and bone marrow cancer therapy GSK said Ozzara has been strong since the start of 2024, while asthma drug Trelegy also performed better than expected.

Arexvy is dominating rsv vaccine market In the US, it outperformed rival Pfizer’s shot in sales, gaining two-thirds of the market share in the first quarter since its launch last year. RSV, which typically causes cold-like symptoms, is a leading cause of pneumonia in children and older adults.

Walmsley told reporters the company hopes to launch the shot for people ages 50-59 before the start of the next RSV season, which includes about 15 million at-risk Americans.

GSK shares have surged more than 25 percent since the launch of its RSV vaccine in the US in mid-August 2023. Shares in the FTSE 100 group rose 1.8 percent to 1,703 pence by 0950 GMT.

The company also attributed its increased forecast to a successful royalty dispute appeal for ovarian cancer drug Zejula in the first quarter.

A consensus compiled by the company showed it reported first-quarter profit of 43.1 pence per share on sales of 7.36 billion pounds ($9.18 billion), beating analysts’ forecasts for earnings of 37.3 pence and sales of 7.07 billion pounds.

GSK said sales growth is expected to slow in the second half.

“In particular, the second half of 2024, compared to the same period last year, is expected to be impacted by 2023 launch dynamics and early channel inventory build due to Arexvi. Additionally, we expect the majority of Shingrix sales The first part will be in China,” it said in a statement.

GSK is in the midst of settling a series of lawsuits in the United States related to its discontinued heartburn drug Zantac, alleging that the blockbuster drug, also sold by other companies, causes cancer.

Lucy Coutts said, “GSK has reported growth in all key therapeutic areas, increased R&D spending, and strong consumer engagement for its RSV vaccine, Arexvi. As expected, there is no update on Zantac today, “But we expect news on any agreement in the coming weeks.” Investment director of wealth management firm JM Finn, which holds GSK shares.

The company made provisions for various legal liabilities at £312 million in the first quarter, up from £267 million in the October-December period.

GSK has not disclosed how much it expects to pay for the thousands of Zantac cases still pending, but analysts have estimated the total cost at about $5 billion.

($1 = 0.8020 pounds)

(Reporting by Eva Matthews in Bengaluru and Maggie Fick in London; Additional reporting by Lucy Raitano; Editing by Subhranshu Sahu, Tomasz Janowski, Elaine Hardcastle)

  • Published on May 1, 2024 at 05:50 PM IST

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