VIR - GSK lifts guidance as vaccine business outperforms in Q2 2023
2023-07-26 09:46:46 ET
GSK ( NYSE: GSK ) raised its full-year outlook with its financials for Q2 2023, which stood ahead of expectations on Wednesday amid strong sales results for its vaccine business despite headwinds to the company’s COVID treatments.
The company posted an adjusted profit of 38.8 pence per share and sales of about £7.2B ($9.3B) for the quarter, compared to 34.7 pence per share and £6.8B projected by analysts.
Sales for the quarter grew ~4% YoY adjusted for forex changes, while vaccine sales jumped ~18% YoY to £2.0B, driven by its best-selling shingles vaccine, Shingrix, which added $880M to the topline with ~20% YoY growth globally.
Pandemic solutions, which include the sales of the COVID-19 therapy Xevudy that the company marketed with Vir Biotechnology ( VIR ), generated no revenue during the quarter, and excluding that impact, revenue improved ~11% YoY.
Implying strength in its Specialty Medicines and General Medicines businesses, GSK ( GSK ) increased its full-year revenue outlook to 8% to 10% YoY growth from 6% to 8% YoY projected previously.
The growth forecasts for adj. operating profit and adj. EPS were increased to 11%–13% YoY and 14%–17%, compared to 10%–12% and 12%–15%, respectively.
"We feel better and stronger year on year in terms of our ability to deliver the long-term outlooks, and I'm sure that over time the market will recognize that," said CEO Emma Walmsley, who once faced activist pressure to revive the fortunes of the London-listed company.
The company thinks that the separation of its consumer business, Haleon ( HLN ), has allowed it to increase focus on its vaccine and infectious disease businesses and pursue deals with $7B generated from the spinoff to boost the pipeline.
The company also updated on its latest vaccine product, Arexvy, which became the first U.S.-cleared shot for the prevention of infection with respiratory syncytial virus (RSV).
After getting U.S. and EU approval for those aged 60 years and older, GSK ( GSK ) expects to expand its label with Phase 3 readouts and regulatory submissions lined up during H2 2023 for those aged 50–59 years.
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GSK lifts guidance as vaccine business outperforms in Q2 2023