Q3 2024 GSK plc Earnings Call Transcript
Key Points
- GSK PLC (GSK) reported a 9% sales growth and 19% profit growth year-to-date, reflecting strong performance in Specialty Medicines.
- The company has made significant progress in its pipeline, with 11 positive Phase III readouts and plans for five major new product approvals next year.
- GSK PLC (GSK) successfully resolved the majority of Zantac litigation, removing a significant perceived risk.
- Specialty Medicines, particularly in HIV, respiratory immunology, and oncology, showed strong double-digit growth.
- The company reported improvements in cash flow, with GBP5.3 billion generated from operations year-to-date, supporting pipeline investment and shareholder returns.
- Total Vaccines sales were down due to lower sales of Arexvy and Shingrix, impacted by recent guideline changes and prioritization of COVID vaccines in the US.
- The US Inflation Reduction Act is expected to impact GSK PLC (GSK) with an estimated GBP400 million to GBP500 million effect, including on HIV sales.
- The company faces challenges in the Chinese market due to tighter POB budgets and macroeconomic pressures affecting vaccine sales.
- There is uncertainty around the revaccination and cohort expansion for Arexvy, which could limit growth potential in the near term.
- GSK PLC (GSK) experienced a significant decrease in Gardasil royalties, impacting profit growth by minus 8% in the quarter.
Hello, everyone. Welcome to today's call and webcast. The Q3 presentation was sent to our distribution list by e-mail, and you can also find it on gsk.com. Please turn to slide 2. This is the usual safe harbor statement. We will comment on our performance using constant exchange rates, or CER, unless stated otherwise. Please turn to slide 3. Today's call will last approximately 1 hour, with the presentation taking around 30 minutes and the remaining time for your questions.
Our speakers today are Emma Walmsley Luke Miels, Deborah Waterhouse and Julie Brown, with Tony Wood and David Redfern joining for Q&A.
Please ask only one to two questions so that everyone has a chance to participate.
Turning to slide 4. I will now hand the call to Emma.
Welcome to everybody joining us today. Please turn to the next slide. I'm pleased to report that despite some challenges, this has been a positive quarter for GSK and we're delivering 9% sales growth and 19% profit growth
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