GSK Lifts Guidance After HIV, Cancer Treatments Boost Sales — Update

By Helena Smolak

GSK upgraded its sales and earnings forecasts for the year after HIV and cancer treatments catapulted sales ahead of analysts' expectations in the second quarter, making it the latest major pharmaceutical company to lift its outlook.

The British pharmaceutical giant said Wednesday it now expects sales growth of 7% to 9% this year compared to a previous forecast in the upper range of 5% to 7%. Meanwhile, core operating profit--a closely watched measure of profitability--is expected to grow between 11% and 13%, up from 9% to 11% previously. The company also lifted its expectations for adjusted earnings per share growth to 10%-12% from 8-10%.

GSK joined Anglo-Swedish AstraZeneca, Swiss peers Roche, Novartis and France's Sanofi in increasing forecasts for 2024 alongside their latest results.

The upgrade came after GSK posted higher sales in the second quarter, with specialty medicines benefiting from new product launches in oncology and HIV.

Sales climbed 13% to 7.88 billion pounds, equivalent to $10.11 billion, beating the GBP7.51 billion that analysts had expected, according to a market consensus provided by the company.

GSK's HIV sales grew 13% to GBP1.76 billion, boosted by strong demand for Dovato and Juluca treatments as well as long-acting medicines such as Cabenuva and Apretude. In oncology, sales more than doubled to GBP356 million, lifted by strong demand for Jemperli, a treatment in combination with chemotherapy for patients with endometrial cancer.

Net profit slipped to GBP1.17 billion. However, core operating profit, more closely watched by analysts and investors, climbed 18% to GBP2.51 billion.

Core earnings per share--one of the company's preferred metrics, which strips out exceptional and other one-off items--rose 13% rates to 43.4 pence.

GSK declared a second-quarter dividend of 15 pence a share, and said it expects to pay a 60-pence dividend for the full year.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

July 31, 2024 03:53 ET (07:53 GMT)

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