GSK lifts full-year outlook as Q2 sales rise

GlaxoSmithKline lifted its full-year outlook on Wednesday as it posted a jump in second-quarter sales.

In its second-quarter results, the pharmaceuticals group said total sales grew 13% at constant exchange rates to £6.9bn, excluding Covid-19 solutions, with a strong performance in all three product groups.

Specialty medicines sales rose 35% to £2.7bn and vaccine sales were up 3% at £1.7bn, with sales of shingles vaccine Shingrix more than doubling to £731m. Glaxo said this was mainly due to a recovery in demand, strong commercial execution aimed at shifting the shingles vaccination season forward, and earlier-than-expected channel inventory build in the US.

Adjusted operating profits were up 22% to £2.0bn.

The pharmaceuticals group now expects 2022 sales growth of between 6% and 8%, up from previous guidance of 5% to 7%, while adjusted operating growth is seen at between 13% and 15%, up from previous guidance of 12% to 14%. The guidance excludes any contribution from Covid-19 solutions.

Chief executive Emma Walmsley said: "This is GSK's first set of results as a newly focused biopharma company, and we have delivered an excellent second quarter performance, with strong growth in specialty medicines, including HIV, and a record quarter for our shingles vaccine Shingrix.

"With this momentum in sales and operating profit growth, we have raised our full-year guidance and are confident in delivering the long-term growth outlooks we set out for shareholders last year."

Laura Hoy, equity analyst at Hargreaves Lansdown, said: "GSK’s first set of results without its consumer healthcare arm Haleon under the umbrella were promising. The group’s capitalising on a return to more normal buying patterns following the pandemic as lower priority vaccines for conditions like Shingles are back in demand and the antibiotics market recovers.

"GSK’s also making good on promises to grow Specialty Medicines through a portfolio of new HIV drugs, which contributed over a third to the division’s revenue growth in the second quarter.

"All of this supported improved guidance for the full year, suggesting the leaner organisation is more nimble than expected."