GSK’s profit outshines estimates as vaccines keep growing

The positive report comes after GSK faced a series of challenges as some vaccine sales sputtered, it stopped research on an experimental cancer drug and a potential blockbuster met with negative regulatory scrutiny in the US

GSK Plc reported better-than-expected profit and raised its estimates for revenue at two key divisions in a report that offered some respite after recent setbacks.

The UK drugmaker’s best-selling shingles shot Shingrix as well as specialty medicines including drugs for asthma, HIV and cancer underpinned the brighter outlook. Profit and sales this year are likely to be at the top end of the company’s forecast range at constant exchange rates, it said Wednesday. The shares rose as much as 2% in early London trading.

The positive report comes after GSK faced a series of challenges as some vaccine sales sputtered, it stopped research on an experimental cancer drug and a potential blockbuster met with negative regulatory scrutiny in the US.

Earnings per share excluding some items rose to 46.5 pence in the second quarter, higher than the 42.4 pence estimated by analysts surveyed by Bloomberg. The specialty medicines division, which includes Benlysta for lupus and Cabenuva for HIV, will be the main growth driver, with sales forecast to increase by a low-teens percentage. The prior outlook was for low double-digit growth.

GSK shares have gained more than 5% this year, underperforming rivals AstraZeneca Plc and Novartis AG.

GSK now plans to start late-stage trials on four medicines in the second half — two cancer drugs, a treatment for fatty liver disease and an ultra-long acting HIV treatment.

The drugmaker now expects that sales at its vaccines division could be little changed this year, an improvement over an earlier forecast that assumed a decline. That’s another optimistic signal regarding the future of vaccines, a business that has suffered uncertainty amid the leadership of US Health Secretary Robert F. Kennedy Jr., who holds skeptical views about immunizations.

GSK’s results are inclusive of tariffs announced so far, including the trade agreement between the US and European Union announced this month.