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GSK has lifted its full-year profit forecast after the world’s first jab for the respiratory syncytial virus (RSV) helped power a strong third quarter of vaccine sales at the UK drugmaker.
The pharmaceutical company now expects annual revenue to increase by 12 to 13 per cent, up from its previous guidance of 8 to 10 per cent. Adjusted earnings per share will grow between 17 and 20 per cent, exceeding an earlier expectation of 14 to 17 per cent, the company said on Wednesday.
In the third quarter, sales of vaccines increased by 33 per cent from a year earlier, driven by Arexvy, the group’s the newly launched jab for RSV. GSK said it benefited from some initial inventory stocking for Arexvy after its launch this quarter and expects full year sales to be between £900mn and £1bn.
RSV, a common respiratory condition, affects about 64mn people worldwide and causes about 160,000 deaths, according to the US Centers for Disease Control and Prevention. It hits the elderly and infants the hardest.
GSK beat Pfizer to market with the first vaccine for RSV and generated more than £700mn ($850mn) in Arexvy sales in the quarter, compared with Pfizer’s shot Abrysvo, which made $375mn. But the US drugmaker believes it will have an added advantage as its vaccine can also be taken by pregnant women to protect their infants from the disease.
GSK said that sales of its shingles shot, Shingrix, also climbed in the quarter. Overall revenues hit £8.1bn in the period, surpassing expectations of £7.8bn, and 10 per cent higher than a year ago. Adjusted earnings per share were 50.4p, above the 46p analysts predicted and 17 per cent higher than a year ago.
Emma Walmsley, GSK’s chief executive, said the company is delivering “strong and sustained performance momentum”.
“Competitive performance was broadly based but benefited particularly from the outstanding US launch of Arexvy, the world’s first RSV vaccine. Our excellent execution supports an upgrade to our full-year 2023 guidance,” she said.
The UK-based company will pay a dividend of 14p for the third quarter and expects to pay 56.5p for the full year. GSK said its forecasts exclude sales of Covid-19 products.
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