GSK - GSK vaccine sales drive growth amid COVID products decline affirms FY23 outlook

2023-04-26 05:04:50 ET

GSK ( NYSE: GSK ) is trading in the red premarket on Wednesday following its Q1 results, which saw revenue dip due to lower COVID-19 product sales, but the company affirmed its FY23 outlook.

Q1 Adjusted EPS rose +14.55% Y/Y at actual exchange rates (AER) (+6% at constant exchange rates - CER) to £0.370.

Total total sales fell -3.3% Y/Y (-8% Y/Y at CER) to ~£6.95B.

The British pharma giant said that excluding COVID-19 solutions, sales grew +10% CER with strong performance across Vaccines, Specialty and General Medicines.

"We are very focused on our upcoming launches, including our potential RSV older adult vaccine, and on continuing to strengthen our pipeline – both organically with several positive late-stage read-outs already this year, and through targeted business development," said GSK CEO Emma Walmsley.

Q1 Specialty Medicines sales declined -29% Y/Y (-33% at CER) to £2.24B. Excluding COVID-19 solutions, sales grew +21% Y/Y (+13 at CER) to ~£2.21B.

Sales of COVID-19 therapy Xevudy , which is developed by GSK and Vir Biotechnology ( VIR ), declined -98% Y/Y to £31M.

HIV portfolio sales increased +24% Y/Y (+15% CER) to £1.47B. Sales of Dolutegravir products grew +16% Y/Y (+8% CER) to £1.28B.

Immuno-inflammation, Respiratory and Other sales grew +16% Y/Y (+9% CER) to £601M. Benlysta sales increased +18% Y/Y to £253M.

Asthma therapy Seretide/Advair sales rose +12% Y/Y (+8% at CER) to £339M, mainly due to targeted promotion in certain international markets and the benefit of a favorable US prior period RAR adjustment, partially offset by generic competition in Europe, the U.S. and certain international markets.

Meanwhile, Oncology sales rose +7% Y/Y (+2% CER) to £136M.

Vaccines segment sales grew +22% Y/Y (+15% CER) to ~£2.04B. Shingrix sales rose +19% Y/Y (+11% CER) to £833M, growing in International and Europe reflecting new launch uptake, demand and favorable pricing mix. However, U.S. sales were mainly impacted by unfavorable wholesaler and distributor inventory movements.

Meningitis portfolio grew +32% Y/Y (+25% CER) to £280M. However, Influenza vaccine declined -33%Y/Y (28% CER) to £12M.

GSK added General Medicines segment sales increased +12% Y/Y (+9% CER) to £2.67B, driven by both Respiratory and Other General Medicines categories, due to ongoing demand for Trelegy in all regions in addition to a strong allergy season in Japan and continued post pandemic recovery of the antibiotic market in Europe and International regions.

Trelegy Ellipta sales rose +37% Y/Y (28% CER) to £465M.

Dividend : GSK said the board declared a first interim dividend for Q1 2023 of 14p per share (Q1 2022: 17.50p per share retrospectively adjusted for the Share Consolidation).

The equivalent interim dividend receivable by ADR holders will be calculated based on the exchange rate on July 11. The ex-dividend date will be May 18, with a record date of May 19, and a payment date of July 13.

The company expects to declare a dividend of 56.5p per share for 2023.

Outlook 2023 :

GSK affirmed its full-year 2023 outlook at CER and noted that expectations and full-year growth rates exclude any contributions from COVID-19 solutions.

The company expects 2023 Turnover to increase between 6% and 8%. Adjusted EPS is expected to increase between 12% and 15%.

Vaccines segment is expected increase of mid-teens per cent in turnover. Specialty Medicines is expected to grow mid to high single-digit per cent in turnover. Meanwhile, General Medicines is expected to be broadly flat to slightly down.

GSK -0.46% to $36.74 premarket April 26

For further details see: