GSK plc (NYSE: GSK), the UK pharmaceutical giant, announced its financial results for the fourth quarter and full-year 2023, with a 5% year-on-year (YOY) growth to GBP 30.3 billion (USD 38.5 billion) in revenue over the 12-month period. When excluding the impact of COVID-related products, the company’s sales surged by 14% YOY, all figures reported in constant currency terms.
The Vaccines division emerged as a significant growth driver, with a 24% YOY increase in sales. The shingles vaccine Shingrix marked a 17% rise to GBP 3.5 billion, while meningitis vaccines saw a 14% increase to GBP 1.3 billion. The respiratory syncytial virus (RSV) vaccine Arexvy had an exceptional launch, contributing over GBP 1.2 billion in sales. HIV sales also experienced a 13% increase, reaching over GBP 6.4 billion. However, Specialty Medicines saw an 8% YOY decrease, and General Medicines increased by 5%. For 2024, GSK anticipates a sales growth of 5% to 7% and an adjusted operating profit growth of 7% to 10%.
GSK’s US market led the way with GBP 15.8 billion in sales, marking a 9% increase over 2023. Europe’s sales reached GBP 6.6 billion, up by 2%, and International markets rose by 1% to GBP 7.9 billion.
China played a substantial role in GSK’s international business growth, driven by channel inventory build related to distributor transitions and the launch of Shingrix. There was also a growing demand for lupus therapy Benlysta (belimumab), and Nucala (mepolizumab), a therapy for eosinophilic asthma, gained coverage on the National Reimbursement Drug List (NRDL) effective from January 2024.
Last October, GSK partnered with Chongqing Zhifei Biological Co., Ltd (SHE: 300122) for the distribution and promotion of Shingrix and future RSV vaccines in China, echoing Merck, Sharp & Dohme’s (MSD) strategy. During the earnings call, COO Luke Miels emphasized the strong partnership with Zhifei, highlighting the trust-based relationship and their effectiveness in partnering with multinationals. GSK plans to maintain a 600-strong sales force in China, providing promotional support alongside Zhifei’s teams, focusing on profile positioning and lifecycle work for Shingrix. Patient education on shingles in China is also a key area of focus for GSK, as disease awareness remains low. Miels aims to replicate or exceed MSD’s success with Gardasil in China, leveraging Zhifei’s distribution network to reach the country’s extensive vaccination points.- Flcube.com
