GSK shares dive as weaker sales and mounting costs unnerve investors
Summary
GSK reported higher third-quarter revenue but lower pre-tax profit, weaker vaccine sales and restructuring charges. Its shares fell as much as 7% after investors reacted to the company’s outlook and concerns about future competition for a major HIV drug.Key Facts
- Third-quarter turnover rose 5% at constant currency rates to £8.9bn.
- Pre-tax profit fell 19% to £1.9bn in the July-to-September quarter.
- Vaccine sales declined 2% to £2.6bn; Shingrix sales fell 5% and Arexvy sales fell 24%.
- Sales of GSK’s HIV, cancer and lupus medicines helped lift quarterly revenue.
- The company recorded £318m in restructuring charges and said total restructuring costs will reach £2.4bn, mostly this year and next.
- GSK’s cost-reduction plan aims to save £1.9bn a year over three years; the company said it was slightly ahead of schedule.
- GSK is reorganising its vaccine business in Belgium, a change expected to lead to about 1,200 job losses.
- The patent protection for GSK’s HIV drug dolutegravir is expected to end toward the end of the decade, allowing generic versions to be sold.
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