GlaxoSmithKline beat second quarter profit expectations with the help of strong demand for its shingles vaccine, prompting the British drugmaker to forecast a smaller fall in profit this year than originally anticipated.
The results bode well for chief executive Emma Walmsley's plans to rejuvenate GSK, which has included the spin off or sale of a number of businesses since she took over in 2017 and began focusing on the company's pharmaceuticals business.
GSK now expects annual earnings for 2019 to decline by between 3 and 5 per cent, an improvement from a previous forecast of a 5 to 9 per cent fall at constant currency. The new forecast reflects improved operating performance, lower interest expense and tax benefits, the company said.
Shares of the FTSE-100 member initially rose to a two-year high as Ms Walmsley outlined "another standout quarter" for the Shingrix vaccine, with sales more than doubling, but they later pared much of those gains.
GSK’s turnover rose 5 per cent to £7.81 billion in the second quarter, compared with analysts’ expectations of around £7.65 billion. Adjusted earnings were 30.5 pence per share. Analysts on average had expected earnings of 25.8 pence. – Reuters
