GSK lifts full-year guidance after 'excellent' Q2

(Sharecast News) - GSK lifted its full-year guidance on Wednesday after an "excellent" second quarter. The drug maker now expects FY23 turnover to rise by 8% to 10%, up from previous guidance for growth of 6% to 8%. Meanwhile, adjusted operating profit is now expected to increase 11% to 13%, up from previous guidance of 10% to 12%.

GSK expects adjusted earnings per share growth of between 14% and 17%, versus previous guidance of 12% to 15%.

Sales for the three months to 30 June rose 4%, or 11% excluding Covid solutions, to £7.18bn. Vaccine sales were up 18%, with sales of shingles vaccine Shingrix 20% higher. Specialty medicine sales declined 7%, but were up 12% excluding Covid solutions, with HIV sales 12% higher. General medicines sales pushed up 8%.

Total operating profit rose more than 100% to £2.1bn.

Chief executive Emma Walmsley said: "We have delivered another excellent quarter of performance, with strong sales and earnings growth, notably in HIV and vaccines, and continued strengthening of the R&D pipeline and product portfolio.

"The approval of Arexvy, the world's first RSV vaccine, was an important milestone for us and is at the forefront of a next wave in vaccine innovation for GSK. Completion of the Bellus Health acquisition also strengthened our late-stage respiratory pipeline. Our momentum supports the upgrade we have made to our financial guidance for 2023 and further increases our confidence in delivering longer-term profitable growth for shareholders."