Vaccine sales help GSK to beat forecasts

GlaxoSmithKline PLC updates

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GlaxoSmithKline beat earnings and revenue expectations on the back of strong sales in its vaccine business, bolstering chief executive Emma Walmsley’s case that she can transform the UK drugmaker.

The pharmaceutical company reported second-quarter revenue of £8.1bn, above the average analyst estimate of £7.6bn, up 6 per cent year-on-year, or 15 per cent on a constant currency basis. Sales of its meningitis vaccine soared 46 per cent and established vaccines such for hepatitis and diphtheria rose 28 per cent, as demand rebounded from the disruption of the coronavirus pandemic.

GSK reported adjusted earnings per share of 28.8p, higher than the consensus forecast. Total operating profit was £1.7bn.

Walmsley said it was an “excellent performance” in the second quarter.

“We expect this positive momentum to continue through the second half of the year, driving us towards the better end of our earnings guidance range for 2021, and meaningful performance improvement in 2022,” she said.

GSK’s shares, which have fallen 13 per cent in the past year, gained 1.8 per cent to 1,425p in London.

GSK does not yet have an approved Covid-19 shot but the company reported sales of £258m of its adjuvant, which boosts the efficacy of vaccines for the pandemic virus, in the first half of the year, and £16m for the antibody treatment it has developed with Vir Biotechnology.

GSK and Vir signed a deal on Wednesday with the European Commission to supply up to 220,000 doses of their antibody treatment for Covid-19. The treatment is designed for high-risk patients to stop them progressing to severe disease.