GSK’s COVID-related sales close to $2 bln, profit boost to wane in 2022
GSK (GSK.L) racked up 1.4 billion pounds ($1.9 billion) in COVID-related sales in 2021, largely for antibody drug sotrovimab, as it beat quarterly forecasts in its first earnings report since rejecting a bid from Unilever for its consumer arm.
The British drugmaker said it expected pandemic-related sales in 2022 to be at similar levels to 2021 but said these would contribute less to profit due to lower margins on its antibody treatment.
The performance is a boost for Chief Executive Emma Walmsley as GSK’s COVID-19 vaccines projects have fallen behind and the impending spin off of the consumer venture with Pfizer (PFE.N) has put the future of the pharmaceuticals business in focus.
Adjusted earnings for the group stood at 25.6 pence per share for the three months to Dec. 31, while turnover rose 13% to 9.53 billion pounds at constant currency rates, topping a consensus of 23.8 pence apiece on sales of 9.49 billion pounds.
GSK’s Sotrovimab, developed with Vir Biotechnology (VIR.O), is one of the few COVID-19 treatments shown to have worked against the fast-spreading Omicron variant, spurring huge demand. It was amongst GSK’s top selling offerings in 2021.
Countries across the world have ordered 1.7 million doses of Sotrovimab, with the United States striking a second deal for the treatment last month. Canada and the European Union have also secured supplies. read more
Sales of sotrovimab, branded Xevudy, stood at 828 million pounds in the fourth quarter, up from 114 million in the third quarter and well above market expectations of 774 million pounds.
Revenue from shingles vaccine Shingrix, a key earnings driver over past quarters, slipped 7% to 597 million pounds, as pandemic restrictions kept the elderly target group from seeking the shot, but sales surpassed consensus of 548 million pounds.
The company said sales in 2022, after the spin-off of its consumer arm, were expected to grow between 5% to 7% and adjusted operating profit to grow between 12% to 14%, including a boost from a settlement with Gilead (GILD.O) but not sales of its COVID products.
Analysts had forecast group earnings of 120.8 pence per share, or a rise of about 8% from 2021, on sales of 36.28 billion pounds.
