Pharmaceutical giant GSK has reported a drop in profit due to charges related to the Zantac lawsuits but has reaffirmed guidance and said its core outlook remained unchanged.
Operating profit fell by 86 per cent, and earnings per share slumped due to a settlement charge of £1.8bn related to the Zantac lawsuits.
The lawsuits arose after recipients of GSK’s heartburn drug Zantac claimed it caused cancer.
Chief executive Emma Walmsey said the move to settle around 80,000 lawsuits across the US – covering about 93 per cent of the claims – was “to remove uncertainty… so we can focus forward.”
Total sales in the third quarter were £8bn, down by two per cent on an actual exchange rate basis and up by two per cent on a constant exchange rate basis.
Core operating profit rose by five per cent, and core earnings per share rose by five per cent, GSK said.
GSK confirmed its 2024 guidance, with turnover growth expected at seven to nine per cent, core operating profit growth at 11 per cent to 13 per cent and core earnings per share growth of 10 per cent to 12 per cent.
Vaccines sales fell by 15 per cent, while sales of speciality medicines and general medicines rose by 19 per cent and seven per cent, respectively.
GSK said the drop in vaccine sales reflected a prioritisation of COVID vaccinations in the US after Advisory Committee on Immunization Practices (ACIP) recommended a second dose of the 2024-2025 Covid vaccine for adults ages 65 years and older.
Chief executive Walmsley said: “We have delivered another quarter of sales and core operating profit growth, and further good progress in R&D. Strong growth in speciality medicines helped to offset lower vaccine sales and reflected successful new product launches in oncology and HIV, as well as the resilience we have now built into GSK’s portfolio and performance.
“Our pipeline continues to strengthen with 11 positive phase III trials reported so far this year and we are currently planning launches for 5 major new product approval opportunities next year.