BREAKING NEWS

GSK lifts annual profit forecast after third quarter beat on vaccines strength

GSK lifts annual profit forecast after third quarter beat on vaccines strength
FILE PHOTO: The GlaxoSmithKline (GSK) logo on top of GSK Asia House is seen through vertical louvres in Singapore, March 21, 2018. REUTERS/Loriene Perera -
Copyright
Loriene Perera(Reuters)
Euronews logo
Text size Aa Aa

(Reuters) – GlaxoSmithKline Plc <GSK.L> on Wednesday raised its annual profit forecast for the second time this year on the back of soaring sales of its Shingles vaccine, sending shares of the British drugmaker up nearly 3%.

The drugmaker now expects full-year profit to be roughly flat compared to last year at constant currency, up from a previous forecast of a fall of 3% to 5%.

Chief Executive Officer Emma Walmsley has set bold plans in motion to rejuvenate GSK, which has included the spin off or sale of a number of businesses since she took over in 2017 and greater focus on the company’s pharmaceuticals business.

Sales of Shingrix, launched in 2017, rose 76% to £535 million, way ahead of analysts’ expectations of £464 million, leading vaccines unit sales to rise 15% to £2.31 billion.

Turnover rose 11% to £9.39 billion in the three months ended Sept. 30 from a year earlier.

Adjusted earnings were 38.6 pence per share.

Analysts on average had expected earnings of 33 pence and sales of £9.02 billion, according to a company-compiled consensus https://www.gsk.com/en-gb/investors/analyst-consensus/analyst-consensus of 15 analysts.

The company said the new forecast reflects operating performance, increased investment in research and development as well as a lower expected effective tax rate of around 17% for the year.

GSK shares were up nearly 3% to 1788 pence at 1213 GMT, their highest since May 2013.

(Reporting by Pushkala Aripaka and Ankur Banerjee in Bengaluru; Editing by Tomasz Janowski)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.
Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.