GSK Share Price Surged, Then Fell 1.4% on Q3 Earnings Results

The GSK plc (LON: GSK) share price spiked higher, then fell 1.4% after releasing its Q3 earnings results. The multinational pharmaceutical company reported that its Q3 sales surged by 10%, and when excluding the impact of COVID-19, they have risen by an impressive 16%.

Sales in the vaccines segment experienced a remarkable increase of 33%, which climbs to 34% when we account for the absence of COVID-19's influence. Notable performances included Shingrix, with a revenue of £0.8 billion and a growth of 15%, and Arexvy sales amounting to £0.7 billion.

In the Specialty Medicines category, sales have shown resilience, with a 1% decrease overall but a robust 17% growth when considering eliminating COVID-19's impact. Notably, HIV-related sales have seen a substantial 15% increase.

General Medicines sales, however, saw a 2% decline, partly due to the effects of generic competition on older products. This decline was mitigated by the exceptional performance of Trelegy, which saw a remarkable growth of 23%.

The overall operating profit and continuing earnings per share (EPS) have reflected robust growth throughout the quarter and the year to date, primarily driven by reduced charges related to the remeasurement of contingent consideration liabilities.

Adjusted operating profit has experienced a significant increase of 15%, and the Adjusted EPS has grown by 17%. These results can be attributed to effective execution, resilient growth, and higher royalty income.

However, it's important to note that these gains were partially offset by increased investments in research and development (R&D), new product launches, and a 7% reduction in operating profit due to lower sales of COVID-19 solutions.

Some of the critical highlights achieved by the company in Q3 was that Arexvy gained approval in Japan as the country's first RSV vaccine designed for older adults. Preliminary data from Phase III trials in adults aged 50-59 have been presented at ACIP, showcasing promising results that support regulatory filings.

New data for Shingrix has unveiled its exceptional 100% efficacy in preventing shingles among adults aged 50 and above in China. The company has also announced a co-promotion partnership with Zhifei in China, set to commence in 2024.

The approval of Apretude as a long-acting treatment for HIV prevention in the EU represents a significant advancement. 

GSK share price. 

The GSK share price spiked higher, then fell 1.4% to trade at 1434.60p from Tuesday’s closing price of 1455.0p.