London-listed pharma giant GSK has raised its guidance after a strong second quarter beat market expectations, boosted by its cancer and HIV portfolio.
Total sales in the second quarter of 2024 reached £7.9bn, an increase of 13 per cent year on year.
Core operating profit at the pharma company rose by 18 per cent on “strong sales and favourable product and regional mix”, the company said.
However, the group’s total operating profit fell by 22 per cent and earnings per shares fell by 27 per cent due to “improved longer term HIV prospects and foreign currency movements”, the company said.
GSK’s retained stake in Haleon, too, weighed heavy on the company at the start of the quarter.
There was a fair value loss of £35 million – versus a gain of £35m in the second quarter of 2023 “on the retained stake in Haleon” GSK said.
GSK sold its last remaining shares in the consumer healthcare company in May this year.
The pharma giant has been focused on developing new medicines and vaccines since covid.
“We have strengthened capabilities in key technology platforms and completed investments to develop new mRNA vaccines, ultra-long-acting HIV medicines and a promising new medicine for severe asthma. All this supports our future growth and confidence to bring meaningful innovation to patients,” chief executive officer of GSK, Emma Walmsley, said.
The company has previously reported a pipeline of 71 new drugs, predicted by GSK to contain at least 12 major new products to be launched from 2025 onwards.
GSK increased its guidance by around 2 per cent for turnover, operating profit and earnings per share, with turnover expected to increase between seven and nine per cent, up from five to seven per cent.
Cash generation in the quarter reached £1.7bn, with a free cash flow of £0.3bn.
An investigation into the potentially cancer-causing properties of its heartburn drug Zantac has led to volatility in GSK’s shares recently.
In June, a Delaware judge allowed almost 80,000 lawsuits against the pharmaceutical company to go ahead.
GSK could be asked to pay tens of billions of dollars in damages. Analysts have estimated GSK’s liabilities single-digit billions of pounds.