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Highlights
- GlaxoSmithKline Plc announced its Q1 2022 results on Wednesday and surpassed expectations with a turnover of £9.8 billion.
- The growth was led by the strong sales of GSK's COVID-19 drug Xevudy as the company generated £1.3 billion in sales from it.
British drugmaker GlaxoSmithKline Plc (LON: GSK) on Wednesday announced the results for the first quarter of 2022, surpassing the expectations with a strong performance. Shares of the company gained over 2% during the day following the announcement.
The FTSE 100-listed company reported strong growth in sales across its Biopharma and Consumer Healthcare business, which is set to become an independent entity post its demerger in mid-2022. Its turnover for the three months to 31 March 2022 surged by 32% to settle at £9.8 billion, and the profit before tax reached £2.6 billion, 71% more than the corresponding period in the previous year.
Key performers
The growth was led by the strong sales of GSK's COVID-19 drug Xevudy as the company generated £1.3 billion in sales from its medicine used for treating the infection. On the other hand, the shingles vaccine Shingrix fetched close to £700 million in sales. The duo took the total sales for speciality medicines during the quarter to £3.1 billion. The sale of general medicines stood at £2.3 billion.
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Region-wise, the US contributed the most to the sales at £3.5billion, followed by other countries at £1.9 billion and Europe at £1.6 billion.
Outlook
For this year, the company expects the sales growth to stay between 5% to 7% and a 12-14% growth in the adjusted operating profit as compared to 2021. Notably, the forecast does not include the sales of Xevudy and other COVID-related products.
Performance of GSK's stock
The Brentford-headquartered company is the UK's second-largest drugmaker and manufactures a range of drugs, vaccines, and consumer healthcare products. It is a constituent of the blue-chip FTSE 100 index.
During the COVID-19 pandemic, GSK's investors got good returns from the stock, and the price has appreciated by 33.42% over the last one year as of 27 April 2022. So far this year, it has performed decently with a year-to-date return of 11.24%.
GlaxoSmithKline’s shares closed at GBX 1,797.00 on 27 April 2022. The drugmaker's current market cap stands at £91,357.65 million.
Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
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Sources:
https://www.gsk.com/media/7639/q1-2022-announcement.pdf
https://www.reuters.com/business/healthcare-pharmaceuticals/gsk-tops-quarterly-expectations-consumer-arm-spin-off-track-2022-04-27/
https://uk.finance.yahoo.com/news/gsk-beats-forecasts-after-covid-treatment-boost-112202058.html
