Latest news with #GSKPLC
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
06-02-2025
- Business
- Yahoo
GSK PLC (GSK) Q4 2024 Earnings Call Highlights: Strong Specialty Medicines Drive Growth Amid ...
Sales Growth: Increased by 8% to over GBP31 billion. Core Operating Profit: Up 13%. Core EPS: Increased by 12%. Dividend: Increased to 61p per share. Specialty Medicines Growth: Up 19% in 2024. Oncology Sales: Nearly doubled to more than GBP1.4 billion. HIV Sales Growth: Up 13% for the full year. Vaccine Sales: GBP9 billion, down 3%. Free Cash Flow: Improved to GBP3.5 billion, excluding Zantac payments. Net Debt: Reduced to GBP13 billion. Share Buyback Program: Announced up to GBP2 billion over the next 18 months. 2025 Sales Growth Guidance: Expected to increase between 3% and 5%. 2025 Core Operating Profit and EPS Guidance: Expected to increase between 6% and 8%. Warning! GuruFocus has detected 4 Warning Signs with GSK. Release Date: February 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GSK PLC (NYSE:GSK) reported an 8% increase in sales for 2024, reaching over GBP31 billion, driven by strong growth in specialty medicines. Core operating profit rose by 13% and core EPS increased by 12%, leading to two upgrades in guidance for 2024. The company announced a dividend increase to 61p per share and plans to pay 64p in 2025, reflecting strong financial performance. GSK PLC (NYSE:GSK) expects five new product approvals in 2025, including BLENREP for multiple myeloma and depomokimab for severe asthma. The company achieved 13 positive Phase III readouts in 2024, strengthening its R&D pipeline, particularly in oncology and respiratory immunology. Vaccine sales faced challenges due to external pressures in the U.S. and China, impacting Arexvy and Shingrix. The introduction of the Inflation Reduction Act is expected to have a GBP150 million to GBP200 million impact on HIV sales in 2025. GSK PLC (NYSE:GSK) adjusted its expectations for vaccine sales growth, anticipating a decrease in low single-digit percent in 2025. The company faces pricing and genericization pressures in its General Medicines portfolio, expecting sales to be broadly flat in 2025. There is significant speculation and potential changes to U.S. vaccine policy, contributing to short-term pressures on the vaccine market. Q: Can you provide more details on your expectations for Shingrix in China for 2025, given the current macroeconomic challenges? A: Emma Walmsley, CEO, mentioned that while there are short-term pressures acknowledged for 2024 and 2025, GSK remains ambitious about the long-term potential in China. The partnership with Joffe is aimed at navigating these short-term challenges, focusing on expanding in high-tier cities. Q: Within the mid-single-digit growth for HIV in 2025, are you anticipating much competitive impact from the launch of lenacapavir? A: David Redfern, President of Corporate Development, expressed confidence in continued growth for Apretude, highlighting the underdeveloped PrEP market in the U.S. and the strong efficacy of long-acting options. He noted that while lenacapavir may enter the market, it has limitations such as drug-drug interactions and nodules, which may not appeal to all patients. Q: Can you discuss the international opportunity for Arexvy and what factors might limit your ability to access these markets in 2025? A: Luke Miels, Chief Commercial Officer, stated that GSK is encouraged by the early uptake of Arexvy outside the U.S., with national immunization programs in several countries. The focus is on differentiating based on clinical data, and the market research indicates positive perceptions of Arexvy's efficacy and cost-effectiveness. Q: What are the expectations for peak sales of Arexvy and Shingrix, given the current headwinds? A: Emma Walmsley, CEO, reiterated that there is no change to the long-term ambitions for these assets. The short-term pressures are acknowledged, but the broader portfolio's strength and pipeline progress allow GSK to maintain its outlook for 2031, with significant contributions expected from specialty medicines and oncology. Q: How does GSK view the commercial environment for Arexvy in the U.S., particularly with Pfizer gaining market share? A: Luke Miels, Chief Commercial Officer, acknowledged the competitive pressure but emphasized GSK's focus on retail and preserving value. He noted that Arexvy holds a significant market share and that GSK is positioning itself for future opportunities, including potential revaccination and expanded indications. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
