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GlaxoSmithKline Reports Robust Q3 2023 Sales Growth, Boosted by Vaccine Success

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GlaxoSmithKline (GSK) has announced impressive financial results for Q3 2023, marked by substantial sales and earnings growth, driven by a diverse range of factors. The company reported a 10% increase in total sales, with an even more significant 16% growth when excluding COVID-19-related sales.

One standout contributor to GSK’s stellar performance was its vaccines segment, which experienced a remarkable 33% surge in sales, reaching a 34% increase when excluding COVID-19 vaccine-related sales. Particularly, the Shingrix vaccine demonstrated impressive growth, with sales totaling £0.8 billion, reflecting a 15% increase. Arexvy, another vaccine product, also performed admirably with sales amounting to £0.7 billion.

In the Specialty Medicines category, while there was a slight decline in sales by 1%, excluding the impact of COVID-19, sales saw a remarkable 17% increase. Notably, GSK witnessed a 15% growth in HIV-related sales, underscoring the company’s commitment to addressing critical healthcare needs.

However, in the General Medicines segment, there was a 2% decline in sales. This decline was attributed to generic competition affecting older products. Nevertheless, this impact was partially offset by the outstanding performance of Trelegy, a respiratory product, which exhibited a substantial 23% increase in sales.

Overall, GSK’s operating profit and continuing earnings per share (EPS) showed significant growth both in the quarter and year-to-date. These positive results were further bolstered by lower charges related to contingent consideration liabilities remeasurement.

Adjusted operating profit saw a notable 15% increase, while adjusted EPS witnessed a commendable 17% growth. This remarkable performance was attributed to strong execution, resilient growth, and higher royalty income. However, it is worth noting that this growth was partially offset by increased investments in research and development (R&D), new product launches, and a 7% reduction in operating profit due to lower COVID-19 solutions sales.

Looking ahead, GSK emphasized its commitment to R&D delivery, underlining its role in driving long-term growth. Notable milestones include the approval of Arexvy in Japan as the country’s first RSV vaccine for older adults and positive preliminary phase III data for adults aged 50-59. Additionally, new data on Shingrix showcased 100% efficacy in preventing shingles in adults aged 50+ in China, and GSK announced a co-promotion partnership in China with Zhifei set to begin in 2024.

In the area of HIV, Apretude, a long-acting treatment, gained approval for HIV prevention in the EU. GSK’s clinical development plans are advancing for innovative long-acting treatment and prevention regimens, with data anticipated in 2024.

The company also celebrated regulatory achievements, including the approval of Ojjaara by the US FDA as the first and only line-agnostic treatment for myelofibrosis patients with anemia. Jemperli, in combination with chemotherapy, received approval in the US as a new frontline treatment for endometrial cancer. Moreover, GSK agreed to acquire worldwide rights to Janssen’s JNJ-3989, potentially enhancing functional cure rates for bepirovirsen in chronic hepatitis B treatment.

Buoyed by its robust performance, GSK upgraded its guidance for 2023. The company declared a dividend of 14p for Q3 2023, with an expected full-year dividend of 56.5p. Projections for the year ahead include a 12-13% increase in turnover, a 13-15% growth in adjusted operating profit, and a remarkable 17-20% increase in adjusted EPS.

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Emma Walmsley, Chief Executive Officer of GSK, expressed confidence in the company’s performance and prospects, particularly highlighting the success of the Arexvy vaccine and the promising outlook for GSK’s longer-term future, including advancements in the vaccines pipeline, the development of an ultra-long-acting HIV portfolio, and significant prospects in respiratory medicine.


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