Drugs firm GSK raises targets after strong cancer and HIV treatment sales

Drugs firm GSK (GlaxoSmithKline) has lifted its profits and sales growth targets for the year after a boost from cancer and HIV treatments.

The firm’s boss, Emma Walmsley, hailed an “excellent second quarter performance”.

The pharmaceutical giant told shareholders on Wednesday that sales grew by 13% to £7.9 billion for the second quarter of 2024.

It said this was supported by a 22% increase in speciality medicine sales, a 13% rise in HIV treatment sales, and oncology sales more than doubled to around £400 million.

Meanwhile, sales of vaccines were up 1% despite an impact from lower Covid-19 related sales.

It also said sales of its Shingrix vaccines were down 4% to around £800 million for the quarter.

The company reported core operating profits of £4.95 billion for the half-year as a result, up 16% year-on-year, slightly surpassing analyst predictions.

As a result, GSK said it expects core operating profit to grow by between 11% and 13% for the year, upgrading its previous range of 9% to 11%.

It also said it is on track to deliver turnover growth of 7% to 9%. This represents an increase on its previous target of between 5% and 7%.

Ms Walmsley added: “Q2 sales grew in all areas, with Specialty Medicines in particular benefiting from new product launches in oncology and HIV.

“In research and development, so far this year, we have secured approvals or filings for 10 major opportunities and reported positive data from seven phase III trials.

“We have also strengthened capabilities in key technology platforms and completed investments to develop new mRNA vaccines, ultra-long-acting HIV medicines and a promising new medicine for severe asthma.

“All this supports our future growth and confidence to bring meaningful innovation to patients.”