GSK Raises Full-Year Guidance Amid Strong Sales of HIV and Oncology Drugs

GSK Raises 2023 Profit Outlook on Strong Sales of HIV, Cancer, and Respiratory Drugs

GSK Expects EPS Growth of 10% to 12%, Excluding Certain Items, Up from the Previous Forecast Range of 10%. This Marks the Company's Second Consecutive Guidance Raise This Year.

Under the leadership of CEO Emma Walmsley, GSK streamlined its business portfolio and divested its consumer division to focus on vaccine development. Last year, GSK launched a vaccine targeting respiratory syncytial virus (RSV) in the United States, capturing a larger market share than its competitor Pfizer. However, due to U.S. recommendations against using the vaccine in younger populations, expectations for its continued growth have been hindered.

GSK said that Shingrix, the shingles vaccine, saw a 4% drop in sales year-over-year in the second quarter, partly due to changes in pharmacy reimbursement methods in the U.S. and challenges reaching some potential users. Sales of the vaccine were 18% below the average analyst estimate.

Trelegy, GSK's drug for treating certain chronic lung diseases, has far exceeded sales expectations. New long-acting HIV drugs have also driven an increase in performance guidance. These drugs have the potential to change the way patients treat and prevent HIV, as patients only need injections every few months instead of taking pills daily.

Lawsuits over Zantac's alleged link to cancer have significantly weighed down GSK's stock price. Individuals who previously used Zantac are suing GSK and other manufacturers, claiming that the drug’s active ingredient, ranitidine, can degrade under certain conditions into a potentially carcinogenic substance known as NDMA. These companies have denied the allegations.