GSK raises profit guidance as vaccine demand grows

GSK has lifted its profit forecasts for the year as it highlighted strong demand for respiratory virus and shingle vaccines.

Shares in the company made gains on Wednesday morning as a result.

Emma Walmsley, chief executive officer of the pharmaceutical firm, hailed a “strong start to 2024, with another quarter of excellent performance and continued pipeline progress”.

The firm said it therefore expects to see annual core operating profits grow by between 9% and 11% in 2024, improving upon its previous forecast of 7% to 10%.

It also told shareholders that turnover is expected grow at the upper end of its 5-7% range.

GSK said total sales grew by 10%, or 13% excluding Covid-19 related treatments, for the first quarter of 2024 compared with a year earlier.

This was boosted by a 16% rise in vaccine sales, as it benefited from strong demand for Shingrix.

Sales of the shingles vaccine treatment jumped by 18% as it was supported by expanding immunisation programmes in many markets, including the UK and Australia.

The company also saw higher demand for Arexvy, a respiratory virus vaccine for older adults, amid positive sales in the US.

However, GSK said it saw a negative impact, of around six percentage points, to its vaccine business due to lower demand for Covid-related treatments.

Ms Walmsley added: “We have strengthened prospects for growth in all of our key therapeutic areas this quarter: infectious diseases, HIV, respiratory/immunology and oncology.

“We expect this strong momentum to continue and look forward to delivering another year of meaningful growth in sales and earnings in 2024.”

GSK shares were up 2.1% to 1,709p after early trading.