By Helena Smolak
GSK posted higher profit as sales for its specialty treatments including HIV, cancer and asthma beat expectations, offsetting lower vaccine sales on weak demand in the U.S.
GSK plans to bring five new specialty medicines to market this year, including a comeback of previously withdrawn multiple myeloma treatment Blenrep, which holds blockbuster potential, according to the company.
However, concerns about GSK's vaccines business have weighed on its share price, heightened by vaccine skepticism among the U.S. administration, according to analysts.
The pharmaceutical sector is bracing for potential sector-specific tariffs on medicines but GSK said it is well positioned to respond as it has identified mitigation options in the supply chain.
The British pharmaceutical giant said Wednesday that its first-quarter sales rose to 7.52 billion pounds ($10.08 billion) from 7.36 billion pounds the year prior, beating analysts' expectations of 7.42 billion pounds. Higher demand for its specialty medicines business offset a decline of Arexvy sales for respiratory syncytial virus and sales of Shingrix for shingles in the U.S. U.S. health officials in June narrowed Arexvy's patient recommendation to a smaller age range and more at-risk patients.
Sales of its speciality medicines grew 17% on year, at constant currency, with its oncology drugs growing at the quickest pace, at 53%. Its vaccine sales fell 6%, on a 57% slump of Arexvy sales, both at constant currencies.
Net profit rose to 1.62 billion pounds from 1.05 billion pounds the year prior, slightly missing analysts' expectations of 1.67 billion pounds.
Core operating profit--closely watched by analysts and investors--rose 5% at constant currencies to 2.53 billion pounds.
GSK declared a dividend of 16 pence a share for the first quarter, and expects to pay out a dividend of 64 pence for the full year.
The company confirmed its 2025 targets as well as its long-term financial outlook.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
April 30, 2025 02:48 ET (06:48 GMT)
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