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The Markets
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Pharma & Biotech

GSK raises outlook amid strong demand for new RSV vaccine

GSK PLC (LSE:GSK, NYSE:GSK) said a strong third-quarter performance has driven a further upgrade to full-year guidance boosted by demand for its respiratory treatment in the US.

The pharmaceuticals company expects full-year turnover to increase by 12-13%, up from 8-10% before, with adjusted operating profit growth of 13-15%, up from 11-13% previously.

Adjusted EPS is seen rising by as much as 20% compared to 17% before.

Emma Walmsley, chief executive officer, said: "GSK is delivering strong and sustained performance momentum, with another quarter of double-digit sales and earnings growth.

“Competitive performance was broadly based but benefitted particularly from the outstanding US launch of Arexvy, the world's first RSV vaccine.”

Total third-quarter sales rose 10% to £8.15 billion, with adjusted operating profit up 15% to £2.77 billion and adjusted EPS up 17% at 50.4p.

Vaccine sales jumped 33%, with sales of shingles drug Shingrix up 15% to £0.8 billion while strong demand for the new respiratory syncytial virus vaccine, Arexvy, saw sales reach £0.7 billion.

GSK assumes sales of Arexvy will track in line with high-dose flu analogues and for the full year expects sales between £0.9 billion to £1 billion.

Specialty Medicines sales fell 1% with General Medicines sales down 2% with the impact of generic competition to older products, in part offset by Trelegy which rose 23%.

GSK declared a third-quarter dividend of 14p, with a 56.5p payout expected for the full year.

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