GSK Makes Strong Start to 2024, Q1 Sales Rise 10%

Pharmaceutical giant GSK (LON: GSK) said it has kicked off 2024 on a high note, reporting a robust 10% increase in total sales for the first quarter, with an even more impressive 13% rise excluding COVID-related products. 

The company's portfolio showcased broad-based growth across various segments, driving both sales and profit expansion.

Vaccine sales increased by 16%, marking a 22% surge when excluding COVID-related products. Key contributors included Shingrix, which raked in £0.9 billion, marking an 18% increase, and Arexvy, which generated £0.2 billion in sales. Specialty Medicines also saw substantial growth, with a 17% increase overall and a 19% surge excluding COVID. General Medicines, while more modest with a 1% increase, saw a standout performance from Trelegy, boasting a 33% increase and £0.6 billion in sales.

Despite higher charges for CCL remeasurement, GSK reported strong core operating profit growth of 27%. Core EPS also saw a notable uptick of 28%, with a 9% positive impact excluding COVID. GSK's profit growth was attributed to robust sales, SG&A leverage, albeit partly offset by increased research and development investment and lower royalty income.

Looking ahead, GSK is optimistic about its future growth prospects, which it says are fueled by advancements in its pipeline. Positive phase 3 readouts for various medications along with regulatory milestones achieved, including FDA Fast Track designation for bepirovirsen in chronic hepatitis B, bode well for the company's trajectory.

GSK updated its 2024 guidance, expecting turnover growth towards the upper end of the 5% to 7% range and core operating profit growth of 9% to 11%, up from the previous expectation of 7% to 10%. 

“We have made a strong start to 2024, with another quarter of excellent performance and continued pipeline progress, including positive data read outs for 4 phase III medicines. These, together with other R&D achievements, mean we have strengthened prospects for growth in all of our key therapeutic areas this quarter,” said Emma Walmsley, GSK's Chief Executive Officer.