GSK shares rose after the pharmaceutical giant raised its full-year profit guidance alongside market beating turnover and core earnings per share figures for the first quarter of the year. Earnings were boosted by vaccine sales which rose by double-digits as U.S. demand for its recently launched respiratory syncytial virus vaccine Arexvy and market growth for Shingrix in international and European markets offset the six percentage points decline in Covid-19 sales compared to the prior year period. Shares are currently up 1.8% at 1703.50 pence and 17% over the year to date. The following is a selection of reactions and comments.
GSK Delivers With Guidance Lift, Rise in Earnings
0715 GMT - GSK's shingles vaccine Shingrix, its HIV products and lung disease treatment Trelegy were the sales-growth standouts in first quarter, IG analysts say in a market comment after the British pharmaceutical company lifted its outlook for the year. Sales growth across its vaccines, specialty and general medicines business areas was the driving force behind the rise in 1Q turnover and core operating profit, the analysts say. Shares are up 0.6% at 1682.5 pence. (helena.smolak@wsj.com)
GSK Results Are Solid Despite Lower Expected Sales, Arexvy Miss
0819 GMT - GSK's core earnings per share beat and full-year guidance lift outweigh expected lower sales in the second half and a sales miss for its respiratory syncytial virus vaccine Arexvy, Citi analysts say. GSK's lower sales forecast is attributed to its solid prior-year period that posted significant sales growth, boosted by newly launched respiratory syncytial virus vaccine Arexvy, the analysts say in a note. In the first quarter this year, however, Arexvy missed consensus given decreased demand that reflected expected seasonality for this vaccine, they say. Shares rise 0.2% to 1676.00 pence. (helena.smolak@wsj.com)
GSK Guidance Lift Signals Confidence Despite One-Offs
1213 GMT - GSK's results and guidance lift signal confidence in future growth, even though its earnings saw a boost by one-off items, Barclays analysts say in a note. First-quarter earnings were supported by a reversal of last year's provision for the cancer drug Zejula litigation and a stronger royalty income from HPV drug Gardasil, Barclays says. Excluding the one-offs, adjusted operating profit would have still beaten Barclays and market expectations, the analysts add. "We can't recall a time GSK's raised the guide at 1Q, so this does make a statement [..] regarding confidence on the going-forward prospects," they say. GSK raised its profit guidance but left its turnover target unchanged, though the company now guides for the upper end of the range. Shares are up 2.3% at 1,711.50 pence. (helena.smolak@wsj.com)
GSK's RSV Vaccine Arexvy Has Room for Growth, CEO Says
1321 GMT - GSK's CEO Emma Walmsley says in a press call that she sees expansion opportunities for its respiratory syncytial virus vaccine Arexvy across patient groups and markets. GSK aims to tap into the 50-59 age group, which would expand its market potential by an additional 15 million at-risk adults in the U.S., Walmsley says. GSK hopes to receive FDA approval for this age segment in May or June to launch it in time for the next RSV season, Walmsley says. GSK posted a two-thirds market share for Arexvy through 1Q and is confident to reach its more than GBP3 billion peak-year sales forecast, she adds. Although currently mainly U.S.-led, GSK expects to further expand Arexvy internationally, Walmsley says. The vaccine generated 20% of the company's annual sales. (helena.smolak@wsj.com)
(END) Dow Jones Newswires
May 01, 2024 10:23 ET (14:23 GMT)
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