GSK PLC (LSE:GSK, NYSE:GSK) has confirmed what recent prescription data hinted at: Its vaccines business is firing on all cylinders.
Bumper sales of jabs for shingles and the cold-like condition RSV were the propellants behind better-than-expected numbers from the pharma giant.
In the update, GSK also said it had increased its full-year profit outlook and it anticipates higher sales in the first half of the year compared to the latter half.
The company has revised its expected annual growth in adjusted earnings per share from 6%-9% to 8%-10%. Additionally, GSK forecasts its 2024 sales to increase towards the higher end of the previously estimated 5% to 7% range.
Under CEO Emma Walmsley's leadership, GSK has refined its focus on vaccines and infectious diseases while also shifting its HIV strategy towards long-acting treatments and preventive therapies.
This strategic shift is setting the stage for the launch of 12 new products starting in 2025.
For the three months ended March 31, per-share earnings were 43.1 pence on sales of £7.36 billion, soundly beating the consensus forecast of 37.3 pence of EPS on turnover of £7.07 billion.
Shore Capital repeated its 'buy' in the wake of the figures, but noted that a log jam of legal cases related to Zantac and the indigestion pill's alleged link to cancer continued to dog sentiment around the stock.
The broker added: "We still believe a worst-case, up to $30bn scenario for litigation is being reflected in the share price and the improving growth outlook is still being overlooked."