GSK Becomes Latest Pharma Firm To Lift Outlook

GSK (GSK) lifted its sales and earnings projections for the year, after a strong performance by its HIV and cancer drugs drove second-quarter sales higher.

The company said sales rose 13% year-over-year to 7.88 billion British pounds ($10.12 billion), beating analysts’ estimates.

“Q2 sales grew in all areas, with Specialty Medicines in particular benefitting from new product launches in oncology and HIV,” Chief Executive Officer (CEO) Emma Walmsley said, noting that the pharmaceutical firm had “secured approvals or filings for 10 major opportunities and reported positive data from seven Phase III trials.”

GSK Sees Full-Year Sales Rising But Cuts Vaccines Outlook

The British pharmaceutical giant said it expects sales growth between 7% and 9% this year, up from its previous forecast of 5% to 7%. 

Core operating profit is expected to rise between 11% and 13%, up from 9% to 11%, while core earnings per share (EPS) growth is now seen at 10% to 12%, up from 8% to 10%.

But the company said it now expects a low- to mid-single-digit percentage rise in vaccine sales, after previously saying that it expected a high-single-digit to low-double-digit percentage increase.

Guidance Lift Follows Pfizer’s, AstraZeneca’s

On Tuesday, Pfizer (PFE) also beat second-quarter revenue expectations and raised its full-year guidance. Last week, AstraZeneca (AZN) posted better-than-expected Q2 results and lifted its full-year guidance on rising revenue.

GSK’s American depositary receipts (ADRs) are falling 2% about 45 minutes before the opening bell Wednesday.