GSK PLC (LSE:GSK, NYSE:GSK) has raised its annual earnings and sales forecasts after a strong second-quarter performance driven by cancer and HIV treatments.
However, the performance singularly failed to impress the market still worried about the potential financial whack the drug giant might take from ongoing Zantac litigation as the shares opened 1.3% lower.
Core earnings per share (EPS) were 43.4p, and sales reached £7.88 billion, surpassing analysts' expectations of 38.9p and £7.5 billion, respectively.
As a result, GSK has revised its 2024 core EPS growth forecast to 10%-12%, up from 8%-10%, and its sales growth forecast to 7%-9%, up from 5%-7%.
The results effectively vindicate the drug giant's focus on vaccines and treatments for infectious diseases, analysts said. However, there was one minor fly in the ointment - the performance of RSV jab Arexvy, which narrowly missed the mark.
The market appears to have largely anticipated the performance (even if the forecasts didn't reflect this)
US bank Jefferies reiterated its 'buy' advice in the wake of the figures and its 2,100p price target. At 8.12 am, the stock was changing hands of 1,505.5p.