GSK Plc is forecasting an increase in group turnover of 7% to 9% at constant exchange rates this year, but growth is expected to be powered by specialty medicines rather than vaccines. Vaccines for shingles and respiratory syncytial virus (RSV) put in a strong performance earlier this year but slumped in the third quarter following a raft of new regulatory measures.
Group sales in the third quarter were £8 billion, down by 2% in sterling terms, but up by 2% at constant exchange rates. Vaccine sales were down by 15%, while sales of specialty medicines, which include oncology and respiratory drugs, were up by 19%. Sales of general medicines grew by 7% - all at constant exchange rates.
At a press briefing on 30 August, Emma Walmsley, the chief executive, said that Shingrix, the shingles vaccine, was negatively affected by a new rule in the US on the processing of reimbursements while Arexvy, the RSV vaccine, had to make way for the prioritisation of Covid vaccinations. Offsetting this were gains for cancer, respiratory and HIV medicines.
Oncology medicine sales were driven by demand for Zejula, a drug for ovarian and fallopian tube cancers. Respiratory medicine growth was propelled by Trelegy for asthma and chronic obstructive pulmonary disease. Two drug antiretroviral regimens for HIV delivered an increase in market share.
GSK has reported 11 positive outcomes for Phase 3 trials so far this year and is planning five regulatory submissions in 2025. These include submissions for depemokimab, a long-acting biologic for severe asthma, gepotidacin for uncomplicated urinary tract infections, and a new meningitis vaccine.
Group operating profit for the third quarter was £189 million on an IFRS basis compared with £3.33 billion a year earlier. Profit was impacted by the settlement of a US lawsuit related to the heartburn medication Zantac. The settlement was for £2.2 billion, of which £1.8 billion was charged to third quarter profit. Core operating profit, excluding impairment charges, was £2.76 billion.
GSK spent £1.46 billion on R&D in the third quarter, or 18% of sales. One of its new therapeutic areas is antisense oligonucleotides represented by bepirovirsen. Bepirovirsen was jointly developed with Ionis Pharmaceuticals Inc and is in Phase 3 for chronic hepatitis B virus infection. Separately, GSK has an exclusive licence with Wave Life Sciences Ltd in Cambridge, US, to develop an RNA editing oligonucleotide drug. In October the drug, WVE-006, reported positive proof of mechanism data for a genetic disease affecting the lung and liver.
Copyright 2024 Evernow Publishing Ltd