GSK Bets on Further Growth After Shingles and RSV Vaccines Boost Sales — 2nd Update

By Joe Hoppe

GSK expects to further grow sales and earnings after its best-selling shingles vaccine Shingrix and the launch of RSV vaccine Arexvy helped the pharma giant beat analysts' estimates.

Shares at 1001 GMT were down 16.8 pence, or 1.1%, at 1,520.8 pence. However, they were up 4.9% in the last month, and 6.8% over the last year. This compared with a monthly fall of 1% and a 1.5% decline in the past year from the wider FTSE 100.

The British pharmaceutical major posted sales of 8.05 billion pounds ($10.22 billion) for the fourth quarter of last year, up from GBP7.33 billion the year prior and beating a Visible Alpha consensus of GBP7.61 billion. Vaccine sales rose 25% to GBP2.58 billion, driven by Shingrix growth and the Arexvy launch in the third quarter.

The company said Wednesday that it expects turnover in the current year to grow between 5% and 7%, adjusted operating profit to rise 7%-10%, and adjusted earnings per share growth of 6%-9%.

It also upgraded its longer-term 2021-26 outlook to sales rising more than 7% on a compound annual growth rate, and an adjusted operating profit compound annual growth rate of more than 11%. In 2021, it had guided for more than 5% and more than 10%, respectively.

The 2031 sales outlook has been hiked to more than GBP38 billion, an increase of GBP5 billion compared to an estimate given in 2021. This expectation also excludes any income from early-stage pipeline assets, business developments or the Blenrep cancer medication.

"We are now planning for at least 12 major launches from 2025, with new Vaccines and Specialty Medicines for infectious diseases, HIV, respiratory and oncology," Chief Executive Emma Walmsley said.

Arexvy's strong launch--with the vaccine making GBP1.2 billion in 2023--and continued progress in its drug pipeline were the "clear highlights" of last year, Walmsley added.

Fourth-quarter adjusted operating profit increased to GBP1.75 billion from GBP1.595 billion.

For the full-year, operating profit rose to GBP6.745 billion from GBP6.43 billion, while turnover rose to GBP30.32 billion from GBP29.32 billion, beating a company-provided consensus of GBP29.92 billion.

The board declared a quarterly dividend of 16 pence a share, bringing the total for the year to 58 pence a share from 61.25 pence. The board expects to pay 60 pence over 2024.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

January 31, 2024 05:24 ET (10:24 GMT)

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