GSK Reports Strong Q2 Results Driven by Shingrix and HIV Medicines, Raises Full-Year Guidance

Intelligent Finance APP learned that driven by the strong sales of the shingles vaccine Shingrix and HIV drugs, GlaxoSmithKline (GSK.US) exceeded profit expectations in Q2. Meanwhile, the company raised its full-year profit guidance. In constant exchange rate (CER) terms, GSK's Q2 revenue reached £7.18 billion, a year-on-year increase of 4%, surpassing market expectations of £6.77 billion; adjusted earnings per share were 38.8 pence, up 16% year-on-year, higher than market expectations of 34.7 pence.

At constant exchange rates (CER), excluding COVID-19 related business, revenue was £7.14 billion, up 11% year-on-year; operating profit soared to £2.141 billion compared with £98 million in the same period last year.

This pharmaceutical manufacturer now expects adjusted earnings per share to grow by 14%-17% this year, up from the previous forecast of 12%-15%. The company has also raised its full-year revenue growth forecast from the previous 6%-8% to 8%-10%.

In the second quarter, vaccine sales increased by 18% year-on-year, with sales excluding COVID-19 vaccines growing by 15% year-on-year, and Shingrix vaccine sales increasing by 20% year-on-year. Specialty medicine sales decreased by 7% year-on-year, but excluding COVID-19 drugs, sales grew by 12% year-on-year, with HIV drug sales increasing by 12% year-on-year. General medicine sales increased by 8% year-on-year, with Trelegy sales growing by 30% year-on-year.

CEO Emma Walmsley said in a statement: "We have delivered another excellent quarterly performance with strong sales and earnings growth, particularly in HIV and vaccines, while continuing to strengthen our R&D pipeline and portfolio."