UK-based pharmaceutical giant GlaxoSmithKline (GSK; NYSE: GSK) has released its financial report for the third quarter of 2023, showing mixed results over the first three quarters. The company experienced a modest 2% year-on-year (YOY) expansion, reaching GBP 22.3 billion (USD 27.7 billion) at constant exchange rates.
Vaccines Unit and General Medicines Performance
The 9-month performance was significantly driven by the vaccines unit, which saw a 24% jump to GBP 7.3 billion (USD 9.0 billion), and to a lesser extent by the general medicines area, which increased by 5% to GBP 7.6 billion (USD 9.5 billion). These gains helped offset a 15% decline in specialty medicines to GBP 7.4 billion (USD 9.1 billion).
Potential Blockbuster and Turnover Guidance
The potential blockbuster Arexvy (RSV vaccine) led a Q3 recovery, achieving a 10% YOY increase to GBP 8.1 billion (USD 9.9 billion). This positive performance has encouraged GSK to revise its 2023 turnover guidance upwards to a range of 12% to 13% (excluding COVID-19 solutions), up from the previous estimation of 8% to 10%.
Geographical Breakdown and Market Performance
Geographically, the US market contributed GBP 11.4 billion (USD 14.0 billion) with a 4% YOY growth between Q1 and Q3. The European region added GBP 4.9 billion (USD 6.0 billion) with a 2% increase, while the rest of the world’s contribution stagnated at GBP 5.9 billion (USD 7.2 billion).
Chinese Market and Product Highlights
The Chinese market, in particular, saw a strong uptake of lupus therapy Benlysta (belimumab). During the conference call, GSK CEO Emma Walmsley highlighted the recently published 100% efficacy data for Shingrix (shingles/herpes zoster vaccine) in a China study. She also mentioned that the last month’s distribution agreement with local firm Chongqing Zhifei Biological (SHE: 300122) will help the company achieve Shingrix’s global sales target of GBP 4 billion (USD 4.9 billion), thanks to Chongqing Zhifei’s contribution to over 30000 vaccination sites in China.-Fineline Info & Tech
