UK pharmaceutical giant GlaxoSmithKline (GSK; NYSE: GSK, LON: GSK) has reported its financial results for the second quarter of 2024, showing a robust year-on-year (YOY) growth of 13% in constant currency terms, reaching £7.88 billion ($10.12 billion). The company’s performance was marked by growth across all business units, with the exception of the Vaccines unit, which saw a modest 1% YOY expansion.
The Vaccines unit, which includes the blockbuster shingles vaccine Shingrix, experienced a 5% YOY decline to £832 million ($1.069 billion). This decrease was attributed to destocking, shifts in retail vaccine prioritization, and reduced demand in the US. Despite this, Shingrix, launched by GSK in China in 2019, began distribution through partner Zhifei Biologic Co., Ltd (300122.SZ) during the quarter, expanding vaccination points significantly.
During the earnings call, GSK’s Chief Commercial Officer Luke Miels highlighted the initial success of the Zhifei partnership, which is expected to grow vaccination points to 27,000 by year-end. However, he also noted “some softness” in vaccine demand, influenced by tighter budgets at some local CDCs. Miels emphasized that the partnership is in its early stages and will take time to replicate the success of Merck, Sharp & Dohme’s HPV vaccines in China.
On a positive note, GSK’s meningitis vaccines Bexsero and Menveo achieved a 24% YOY growth. Additionally, the respiratory syncytial virus (RSV) vaccine Arexvy, launched during the quarter, generated £62 million ($80 million) in sales.
Specialty Medicines saw a 22% increase, with HIV sales up 13%, and Respiratory/Immunology sales up 18%, driven by asthma drug Nucala (mepolizumab) and lupus therapy Benlysta (belimumab). Oncology sales more than doubled to £400 million ($514 million), including a doubling of sales for the PD-1 drug Jemperli (dostarlimab).
GSK’s strong performance led to an increase in its full-year guidance for revenue growth and core earnings per share to 7%–9% (from 5%–7%) and 10%–12% (from 8%–10%), respectively. However, the forecast for vaccine sales was adjusted to a low to mid-single digit percentage expansion.- Flcube.com
