GSK Upgrades Long-Term Outlook After Q4 Performance, Shingrix Vaccine And Newly Launched RSV Vaccine Shine
Wednesday, GSK Plc (NYSE:GSK) reported fourth-quarter adjusted operating profit of £1.75 billion, up 10% at the actual exchange rate (AER) and up 21% at the constant exchange rate (CER).
The company’s RSV vaccine, Arexvy, hit £1.2 billion in sales in 2023 and £529 million in the fourth quarter. Approximately 6 million of the 83 million U.S. adults aged 60 and older at risk have been vaccinated with Arexvy.
The company reported sales of $10 billion (£8.1 billion), beating the consensus of $9.61 billion.
Also Read: GSK Cuts More Stake In Its Spun-Off Consumer-Healthcare Business Haleon, Raises Over £900M.
Shingrix, a vaccine against herpes zoster (shingles), grew 17% in the full year to £3.5 billion and 23% in the quarter to £908 million on increased demand and favorable pricing, with Q4 2023 representing the highest-ever quarter of sales.
Dividend: The board declared a quarterly dividend of 16 pence a share, bringing the total for the year to 58 pence a share from 61.25 pence. The board expects to pay 60 pence in 2024.
Emma Walmsley, Chief Executive Officer, said, “GSK delivered excellent performance in 2023, with clear highlights being the exceptional launch of Arexvy and continued progress in our pipeline. We are now planning for at least 12 major launches from 2025, with new Vaccines and Specialty Medicines for infectious diseases, HIV, respiratory, and oncology. As a result of this progress and momentum, we expect to deliver another year of meaningful sales and earnings growth in 2024, and we are upgrading our growth outlooks for 2026 and 2031.”
Guidance: GSK expects 2024 sales growth of 5%-7%, adjusted operating profit to rise 7%-10%, and adjusted earnings per share growth of 6%-9%.
The company also upgraded its longer-term 2021-2026 outlook to sales rising more than 7% on a compound annual growth rate and an adjusted operating profit compound annual growth rate of more than 11%.
In 2021, it had guided for more than 5% and more than 10%, respectively.
Adjusted operating profit margin in 2026 is now expected to be more than 31%.
The company expects to generate more than £38 billion in sales by 2031, up from a previous forecast of £33 billion.
Read Next: Medicare’s Historic Negotiations To Lower Drug Prices, Analysts Anticipate Upto Potential Price Cuts Of 60%.
Price Action: GSK shares are up 3.17% at $40.33 during the premarket session on the last check Wednesday.
Photo via Wikimedia Commons
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article GSK Upgrades Long-Term Outlook After Q4 Performance, Shingrix Vaccine And Newly Launched RSV Vaccine Shine originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
