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Investing.com -- GSK (LON:GSK) on Wednesday raised its full-year earnings guidance after posting a 35% rise in second-quarter profit, supported by continued strength in its HIV and oncology treatments.
Total (EPA:TTEF) earnings per share climbed to 35.5p in the three months ended June 30, up from 28.9p a year earlier.
Operating profit increased 33% to £2.02 billion. Group sales rose 6% at constant exchange rates to £7.99 billion, with Specialty Medicines contributing £3.33 billion, an increase of 15% on the same basis.
The British pharma and biotech company said its raised forecast now expects full-year turnover, core operating profit and core earnings per share to grow toward the upper end of previously guided ranges of 3% to 5%, 6% to 8%, and 6% to 8%, respectively.
Sales in the HIV portfolio increased 12% to £1.88 billion in the quarter. Long-acting treatments, including Cabenuva and Apretude, accounted for more than 70% of the growth, with Cabenuva reaching £341 million in quarterly sales and growing 46%. Dovato, the largest product in the portfolio, grew 23% to £655 million.
Oncology sales rose 42% to £484 million, led by Jemperli, which grew 91% to £196 million following an expanded approval in the United States.
Ojjaara/Omjjara added £138 million, up 69%, while Zejula declined 5% to £151 million.
The multiple myeloma treatment Blenrep recorded £4 million in sales after receiving approvals in several markets including the U.K. and Japan.
Respiratory, Immunology and Inflammation sales rose 10% to £963 million. Nucala, which treats eosinophilic asthma and other conditions, posted 7% growth to £498 million, with higher demand in Europe and international markets partly offset by U.S. pricing pressure. Benlysta, used for lupus, grew 13% to £451 million.
Vaccines generated £2.1 billion in revenue, a 9% increase at constant exchange rates. Meningitis vaccine sales rose 22% to £379 million, driven by Bexsero uptake in Europe and the U.S. Shingrix sales increased 6% to £853 million, with strong demand in Europe offsetting lower sales in the U.S. and international markets.
Arexvy, the respiratory syncytial virus (RSV) vaccine, grew 13% to £66 million in the quarter but declined 39% year to date due to lower U.S. demand.
General Medicines sales fell 6% to £2.57 billion. Respiratory products, including Seretide/Advair, continued to face generic competition and pricing pressures. Trelegy, a single-inhaler treatment for COPD, grew 4% to £835 million.
Regionally, sales in Europe rose 11% to £1.84 billion, supported by growth in Oncology and Vaccines. U.S. sales grew 5% to £4.12 billion, with Specialty Medicines offsetting declines in General Medicines. International sales rose 4% to £2.03 billion.
Core operating profit rose 12% to £2.63 billion. Core earnings per share increased 15% to 46.5p.
Royalty income rose 70% to £246 million, reflecting settlements and increased product royalties.
Core research and development costs rose 11% to £1.52 billion, reflecting higher investment in oncology and vaccines.
Free cash flow totaled £1.13 billion in the quarter, up from £328 million a year earlier. Cash generated from operations was £2.43 billion.
Net debt stood at £13.74 billion at the end of June, compared to £13.10 billion at year-end 2024.
The increase reflected acquisitions, dividend payments of £1.27 billion and £808 million spent on share repurchases.
The company declared a second-quarter dividend of 16p and maintained its full-year dividend forecast of 64p.
GSK received three U.S. regulatory approvals during the quarter, including for the Penmenvy meningitis vaccine, the antibiotic Blujepa, and Nucala for COPD.
A regulatory decision on depemokimab for asthma is expected in December. The company reported 16 assets in late-stage development and said further submissions and readouts are expected in the second half of the year.