GSK Announces Q3 2024 Results: Specialty Medicines Drive Growth, Pipeline Strengthens
Key Insights
GSK's Q3 2024 sales reached £8.0 billion, with a 2% CER increase, driven by strong performance in Specialty Medicines, offsetting lower Vaccines sales.
R&D progress includes EU approval for Arexvy in adults aged 50-59 and positive Phase III results for depemokimab in chronic rhinosinusitis with nasal polyps (CRSwNP (search)).
The company confirms its 2024 guidance, projecting a 7-9% turnover growth and a 10-12% increase in core EPS, excluding COVID-19 solutions.
GSK Plc has released its third-quarter results for 2024, showcasing growth in sales and core earnings driven by its Specialty Medicines portfolio. The pharmaceutical giant also highlighted advancements in its research and development pipeline across several therapeutic areas.
Financial Performance
Total sales for Q3 2024 reached £8.0 billion, representing a 2% increase at constant exchange rates (CER). This growth was primarily fueled by a 19% surge in Specialty Medicines sales, which includes HIV (search) (+12%) and Oncology (+94%) segments. General Medicines also saw a 7% increase, driven by Trelegy (+16%). However, Vaccines sales experienced a 15% decline, with Shingrix (-7%) and Arexvy (-72%) impacted by ACIP guideline changes and prioritization of COVID vaccinations in the US.
Core operating profit increased by 5%, and core EPS also rose by 5%, reflecting the strong performance of Specialty Medicines and effective cost management. Cash generated from operations in the quarter amounted to £2.5 billion, with a free cash flow of £1.3 billion.
R&D Highlights
GSK reported significant progress in its R&D pipeline, strengthening growth prospects across key therapeutic areas:
- Infectious Diseases: Arexvy received EU approval for adults aged 50-59 at increased risk, with data indicating protection over three RSV seasons. Gepotidacin's US FDA filing was accepted for uncomplicated UTI, and bepirovirsen was granted SENKU designation in Japan for chronic hepatitis B.
- HIV: Real-world studies demonstrated 99% effectiveness for Apretude, the long-acting medicine for HIV PrEP.
- Respiratory/Immunology: Positive results were announced for depemokimab in the Phase III ANCHOR trial for CRSwNP and full results for SWIFT-1&2 trials in severe asthma. Nucala was approved in Japan for CRSwNP, and positive headline results were announced for the Phase III MATINEE trial for Nucala in COPD.
- Oncology: Jemperli received expanded US FDA approval for endometrial cancer. Blenrep was filed in the US, EU, and Japan and received Breakthrough Therapy Designation in China. GSK5764227 (B7-H3-targeted antibody-drug conjugate) received US FDA Breakthrough Therapy Designation in small-cell lung cancer.
2024 Guidance and Dividend
GSK has confirmed its 2024 guidance, projecting a 7% to 9% turnover growth and an 11% to 13% core operating profit growth. Core EPS is expected to increase by 10% to 12%. These projections exclude any contributions from COVID-19 solutions.
The company has declared a Q3 2024 dividend of 15p per share and expects to declare a dividend of 60p per share for the full year.
CEO Commentary
Emma Walmsley, Chief Executive Officer of GSK, stated, "We have delivered another quarter of sales and core operating profit growth, and further good progress in R&D. Strong growth in specialty medicines helped to offset lower vaccine sales and reflected successful new product launches in oncology and HIV (search), 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."