GSK PLC (LSE:GSK, NYSE:GSK) raised its outlook for the full year after beating expectations with third-quarter revenues and earnings per share.
Group revenues for the FTSE 100 drugmaker came in at £8.55 billion for the quarter to the end of September, up 7% on the same period last year and topping the average City forecast of £8.28 billion.
Standout growth was seen in the Specialty Medicines arm, where sales rose 16% to £3.4 billion, with 15% growth in respiratory, immunology & inflammation, 39% in oncology and 12% for HIV medicines.
Vaccines sales rose 2% to £2.7 billion, with shingles vaccine Shingrix up 13% to £0.8 billion, meningitis vaccines up 5% and RSV jab Arexvy jumping 36%.
Total operating profit and total EPS more than doubled compared to the same quarter last year, reflecting a significant drop in legal expenses after the Zantac costs last year.
Core operating profit rose 8% to £3 billion, with core EPS coming in at 55p, up 11% and well ahead of the consensus estimate of 47p.
This profit growth reflected better Specialty Medicines and vaccines growth, higher royalty income and "disciplined increased investment" in the new drug portfolio in oncology and vaccines.
A dividend of 16p per share is also a penny higher than the Square Mile predicted.
On the full-year outlook, management now expects turnover growth of 6-7%, up from the previous expectation that it would be towards the top end of 3-5% range.
Core operating profit growth is now seen at 9-11%, from the top of 6-8%; and core EPS growth of 10-12% up from the top end of 6-8%.