GSK sales slide as Covid vaccination delays other treatments

GlaxoSmithKline revenue fell 18 per cent in the first quarter, as the Covid-19 vaccination programme delayed sales of its Shingrix shot for shingles.

The UK drugmaker reported sales of £7.4bn for the three months to March. Total earnings per share were 21.5p, 32 per cent lower than the same period last year, which had benefited from some stockpiling ahead of the pandemic lockdowns.

Emma Walmsley, GSK’s chief executive, said the results were in line with the company’s expectations and “reflect the anticipated impacts of Covid-19”.

“We continue to expect a significant improvement in performance over the remainder of the year and reconfirm our guidance for 2021 and 2022 outlook,” Walmsley said on Wednesday.

GSK expects a decline of mid to high single-digit percentage points in adjusted earnings per share for the full year, at constant exchange rates.

She added that the company is strengthening its growth prospects with the launch of an HIV drug, the start of a late-stage trial for a vaccine for the respiratory disease RSV, and a new long-acting treatment for severe asthma.

The earnings are the first since the Financial Times revealed that hedge fund Elliott Management has built a multimillion pound stake in the drugmaker, as it prepares to spin off its consumer health division. GSK said it is on track to complete the demerger in 2022.