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Pharma & Biotech

GSK raises full-year guidance after bumper second quarter; shingles drug the star performer

The drugs giant expects sales to grow by as much as 15% this year

GSK PLC (LSE:GSK, NYSE:GSK) raised its full-year guidance after a bumper second quarter that exceeded City expectations.

The drugs giant now expects 2022 sales to increase by 6% to 8%, compared with a previous forecast of 5% to 7%. The range for core operating profit increases by a percentage point to 13% to 15%.

Total revenues for the second quarter were up 19% at £6.9bn with shingles drug Shingrix the star performer as turnover doubled year on year in the three months.

Adjusted operating profit for the period grew by 22% or 7% at constant exchange rates.

EPS were down sharply largely as a result of accounting changes related to the treatment of what were described as contingent consideration liabilities.

The £30bn demerger of Haleon, GSK’s consumer health business, resulted in a £7bn dividend which strengthens the balance sheet, and, analysts believe, provides scope for bolt-on acquisitions.

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