Latest news with #EmmaWalmsley
Time Magazine
08-05-2025
- Health
- Time Magazine
Emma Walmsley
Antibiotics are the workhorses of the medical world, critical for controlling infections and saving lives but rarely grabbing the attention that blockbuster treatments often do. Dame Emma Walmsley, CEO of the pharmaceutical company GSK, admits they have become 'unfashionable.' But a new antibiotic for treating urinary tract infections (UTIs) might change that. In March, her team at GSK received approval from the U.S. Food and Drug Administration (FDA) for a new type of antibiotic, Blujepa, that interrupts the ability of UTI-causing bacteria, E. coli, to replicate. The drug targets two enzymes that E. coli use to untangle their genetic material in order to proliferate. And because Blujepa works through a novel approach, scientists hope the drug will make it harder for the bacteria to develop resistance against it. Focusing on a new antibiotic for UTIs, which haven't had a novel therapy in decades, was intentional, Walmsley says. Half of women have a UTI at least once in their lifetime, and many experience repeat infections, raising the risk that the bacteria may become resistant to the antibiotics they take. Walmsley says GSK is also developing a different antibiotic to treat more complicated UTI cases as well. Walmsley anticipates three more drugs potentially receiving FDA approval in the coming year, and says there are about a dozen promising medications in the pipeline.
Yahoo
01-05-2025
- Business
- Yahoo
GSK PLC (GSK) Q1 2025 Earnings Call Highlights: Strong Specialty Medicines Growth Amid Vaccine ...
Group Sales: Up 4% in Q1 2025. Operating Profit: Increased by 5%. Core Earnings Per Share: Rose 5% to GBP 0.449. Specialty Medicines Sales: Up 17%. Vaccine Sales: Down 6%. Cash Generated from Operations: Over GBP 1 billion. Dividend: Increased to GBP 0.16 per share. Share Buyback Program: GBP 2 billion commenced. Sales in Q1: GBP 7.5 billion, up 4% year-over-year. Europe Sales Growth: Up 11%. U.S. Sales Growth: Up 4%. Oncology Sales: Up 53%. HIV Sales Growth: Up 7%. Vaccine Sales for Q1: Over GBP 2 billion, down 6%. General Medicine Sales: Stable, with respiratory sales up 1%. Core Operating Margin: Improved to 33.5%. Cash Generated from Operations (excluding Zantac payments): GBP 1.4 billion. Free Cash Flow (excluding Zantac payments): Improved by GBP 0.5 billion. Royalty Income for 2025: Expected to be GBP 750 to 800 million. Warning! GuruFocus has detected 2 Warning Sign with GSK. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GSK PLC (NYSE:GSK) reported a 4% increase in group sales and a 5% rise in operating profit, demonstrating the strength and resilience of its portfolio. Specialty medicines, the largest business segment, grew by 17%, driven by strong performances in respiratory, immunology, inflammation, oncology, and HIV. The company completed the acquisition of IDRX, adding a promising oncology asset to its pipeline. GSK PLC (NYSE:GSK) generated over GBP1 billion in cash from operations, supporting further investment in growth and shareholder returns. The company confirmed its financial guidance for 2025, indicating confidence in continued profitable growth. Vaccine sales were down 6%, with the pace of penetration in the US slowing due to high immunization rates. The introduction of the Inflation Reduction Act (IRA) is expected to be a GBP400 million to GBP500 million headwind throughout the year. General medicine sales were broadly stable, with some areas experiencing declines due to generic competition. The macro environment presents elevated levels of uncertainty, including potential sector tariffs. The company faces challenges in the US vaccines market, with potential impacts from political rhetoric and regulatory hurdles. Q: What are your expectations for the upcoming launches of Newuara COPD and Glenrep? Could there be strong uptake in H2 2025, or are these more 2026 stories? Also, how might tariffs impact GSK, and what are the mitigating strategies? A: (Dame Emma Walmsley, CEO) We are excited about the new launches. For Newuara COPD, the May 7th PDUFA is on track, and we expect strong physician interest. However, pulmonologists are generally conservative, so uptake might be gradual. For Glenrep, we are cautious about immediate contribution due to the need for careful management of ocular side effects. Regarding tariffs, we have prepared multiple strategies, including regional supply chain resilience and productivity improvements, to mitigate potential impacts. Q: How is the new US administration affecting vaccine demand, especially in the pediatric space, and what is the impact of Medicare Part D redesign on GSK? A: (Dame Emma Walmsley, CEO) We are cautious about the vaccine market, but we are where we expected to be. The Medicare Part D redesign impact is within expectations, with HIV being the largest affected area. (Julie Brown, CFO) The impact is spread evenly throughout the year, with HIV contributing GBP150-200 million of the total GBP400-500 million headwind. Q: Can you explain how GSK manages SGNA growth while launching new products, and how tariffs might affect your supply chain? A: (Julie Brown, CFO) We manage SGNA growth by reallocating resources from mature lines and using marketing models to optimize investment. Our supply chain is complex, but most products touch the US, allowing us to absorb potential tariffs through customs value calculations. We are confident in our dual sourcing and productivity initiatives. Q: What are the dynamics within the PREP market, and is there any impact from the US aid shutdown on clinical trial recruitment? A: (David Redfern, President-Corporate Development) The PREP market is underdeveloped, with only a third of potential beneficiaries receiving it. We see opportunities to switch oral patients to long-acting injectables. The US aid shutdown has not directly impacted our trials, but we are working with the community to address broader impacts. Q: What is GSK's long-term HIV strategy, and how do you view the potential impact of long-acting orals from competitors? A: (David Redfern, President-Corporate Development) We focus on long-acting injectables, with promising data for our VH 184 asset. We believe long-acting injectables offer clear patient preference, and while we monitor long-acting orals, we expect them to primarily cannibalize daily orals. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
01-05-2025
- Business
- Yahoo
GSK remains resilient on tariffs as Q1 sales rise 4%
GSK said it remains confident in its ability to absorb the financial impact of potential US pharmaceutical tariffs as it posted a 4% rise in Q1 2025 sales to £7.52bn ($10.05bn), driven by growth in speciality medicines despite weaker vaccine revenues. The UK-based pharma company told investors on 30 April that it expects to navigate possible cost pressures from tariffs through increased operational efficiency, supply chain resilience, and further expansion of its US manufacturing footprint. CEO Emma Walmsley said GSK is starting 'from a position of strength' and is considering accelerating the use of AI to support productivity and mitigate cost base increases: 'Technology is advancing all the time to enable us to do more. Now, there is ongoing work in terms of continually improving the productivity of R&D.' Walmsley added that GSK is exploring alternative sourcing for ingredients and materials and has already taken steps to boost US-based manufacturing: 'We're also very pleased to break ground on our new state-of-the-art manufacturing facility in Marietta, Pennsylvania, this quarter. This is squarely targeted on increasing manufacturing capacity for new pipeline products in the US and means that GSK will have six manufacturing sites in America.' GSK joins peers, including Eli Lilly, MSD, and Johnson & Johnson (J&J), in strengthening domestic production amid uncertainty around US trade policy. GSK was also among several pharmaceutical manufacturers that recently urged the European Union (EU) to permit drug price increases, warning that the region risks further falling behind the US without stronger investment incentives. While the company reaffirmed its full-year revenue growth guidance of 3% to 5%, its Q1 results showed mixed performance across business segments. Sales of speciality medicines climbed 17% to £2.93bn, led by continued growth in its HIV portfolio, asthma treatment Nucala (mepolizumab), lupus drug Benlysta (belimumab), and a more than 50% rise in oncology sales to £415m. New approvals in the quarter included the meningitis vaccine Penmenvy and the first-in-class antibiotic Blujepa (gepotidacin). However, vaccine revenues declined 6% to £2.1bn, reflecting softer demand for shingles vaccine Shingrix, as well as respiratory syncytial virus (RSV) vaccine Arexvy. The company said it expects a recovery in RSV sales following updated US guidance that expands eligibility to adults aged 50 to 59 at an increased risk. 'We welcome the expanded recommendation, which opens up access to a cohort of around 13 million people in the US,' said Luke Miels, GSK's chief commercial officer. 'Although in the current vaccine environment, we don't expect a significant upside this year, and this market will take time to build, but we remain confident in the long-term importance of this vaccine.' Walmsley said GSK is preparing for several key launches in the months ahead, including the relaunch of the blood cancer therapy Blenrep (belantamab mafodotin), a new indication for Nucala (mepolizumab) in chronic obstructive pulmonary disorder (COPD), and its new asthma biologic depemokimab. Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "GSK remains resilient on tariffs as Q1 sales rise 4%" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Up 7.5% in a week! Is the GSK share price about to do an AstraZeneca?
When I first started writing for The Motley Fool more than two decades ago, the GSK (LSE: GSK) share price was a FTSE 100 shining light. In my recollection, GlaxoSmithKline, as it was known then, even outshone pharmaceutical sector rival AstraZeneca (LSE: AZN). It's a different story today. Since taking the helm in October 2012, CEO Pascal Soriot has transformed AstraZeneca into the UK's biggest company. Last summer, its market-cap topped £200bn. Although today it's down to £166bn. Since the start of the Millennium in January 2000, AstraZeneca's share price has soared from 2,395p to 10,775p, an impressive increase of around 350%. And that's before accounting for dividends. By contrast, GSK's journey has been more turbulent. From a high of 1,767p in January 2000, its share price has dipped to 1,482p today. While dividends have cushioned the blow, it's a stark comparison to AstraZeneca's meteoric rise. GSK's dividend, once seen as a stellar source of income with a typical yield of between 5% and 6%, isn't what it was. It was frozen at 80p from 2014 to 2021, as CEO Emma Walmsley diverted shareholder cash into R&D, in a bid to replenish the group's ailing drugs pipeline. It was then reduced to 57.75p in 2022 following the Haleon spin-off. In 2024, it edged up to 61p, offering a yield of 4.1%. Now there's a glimmer of hope. GSK's recent Q1 2025 results, published on 30 April, reignited investor interest, pushing the share price up by 7.5% over the past week. Although it's still down 11% over 12 months. The company reported sales of £7.52bn, a 4% increase year-on-year. Specialty Medicines were the standout, with sales up 17%, including a 28% rise in Respiratory, Immunology, and Inflammation, and a 53% surge in Oncology. Operating profit jumped 50%, while cash generated from operations exceeded £1bn, with free cash flow of £700m. GSK expects to pay a full-year dividend of 64p per share, up almost 5%, and announced a £2bn share buyback, with £273m repurchased in Q1. The company also reaffirmed its full-year guidance, anticipating 3-5% turnover growth and a 6-8% rise in core EPS. AstraZeneca's Q1 results, released a day earlier, showed a 10% increase in total revenue to $13.6bn and a 21% rise in core EPS to $2.49. Market reaction was muted, perhaps due to the high expectations set by its recent performance. The AstraZeneca share price is up 3.5% in a week, but like GSK, is down 11% over 12 months. I don't hold AstraZeneca shares. Last year, I deemed them too pricey. Instead, I placed my bets on GSK, viewing it as an undervalued opportunity. So far, that decision has left me about 20% down, not helped by concerns over potential US tariffs on pharmaceutical imports. Walmsley believes the company can navigate these challenges through AI integration and supply chain adjustments. We'll see. As a contrarian investor, I'm inclined to stick with GSK. There's potentially more value here, with a price-to-earnings ratio of just over eight, less than half AstraZeneca's P/E of 17. The recent uptick is encouraging, but there's still a long road ahead. I'm hoping Walmsley's masterplan will start paying off, but despite the recent jump, I suspect there's a long way to go. The post Up 7.5% in a week! Is the GSK share price about to do an AstraZeneca? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has positions in GSK. The Motley Fool UK has recommended AstraZeneca Plc and GSK. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Daily Mail
30-04-2025
- Business
- Daily Mail
Europeans must do more to boost pharma or risk losing jobs and investment to the US, warns GSK boss
GSK's boss has joined other industry chiefs warning the UK and Europe need to 'do more' to support the industry or risk losing jobs and investment cash to the US. The pharma giant's chief executive Emma Walmsley said European nations faced 'tough choices' on investment'. But she 'absolutely agreed' that backing the creation of new drugs and vaccines was 'one of the best investments' a country could make. Walmsley added: 'It is key that the business environment stays competitive. Europe and the UK could do more in that regard.' The comments echoed those of AstraZeneca's boss Pascal Soriot who said the continent was at risk of falling behind America as an attractive destination for businesses. GSK yesterday reported better-than-expected results for the first three months of this year, with sales rising 2 per cent to £7.5billion while profits were up 4 per cent at £2.5billion. Shares rose 3.6 per cent, or 51.5p, to 1483.5p. Despite the growing threat of US tariffs, GSK said it was 'well positioned' to respond to any new import taxes. America is the firm's largest market for its medicines and vaccines. Last year, more than half of the company's sales came from the US. Walmsley said America remained the company's 'number one market'. AstraZeneca's Soriot said on Tuesday that research and development of new drugs 'has mostly been funded by the US'. 'He warned that if Europe did not keep up, more jobs in the sector would 'move to the US over time'. Many drugmakers were already investing heavily in the US, where medicine prices are the highest in the world and as a result present a bigger potential profit. But the trend has been accelerated by recent threats from President Donald Trump that he will slap tariffs on pharmaceutical imports, encouraging firms to move factories and laboratories across the Atlantic. Pharma bosses on the continent have called for the European Union to allow them to charge higher prices for drugs to help boost investment in new medicines and better compete with American rivals.
