On April 29, 2020 GSK reported strong Q1: sales £9.1 billion +19% AER, +19% CER (Proforma +10% CER*) (Press release, GlaxoSmithKline, APR 29, 2020, View Source [SID1234556759])
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Financial highlights
Reported Group sales £9.1 billion +19% AER, +19% CER (Proforma +10% CER*). Pharmaceuticals £4.4 billion +6% AER, +6% CER; Vaccines £1.8 billion +19% AER, +19% CER; Consumer Healthcare £2.9 billion
+44% AER, +46% CER (Proforma +11% CER*)
Sales growth reflects strong underlying performance and additional impact from increased demand including stock building for many products
Total Respiratory sales £871 million +38% AER, +38% CER. Trelegy sales £193 million +>100% AER,
+>100% CER. Nucala sales £210 million +38% AER, +38% CER
Total HIV sales £1.2 billion, +8% AER, +8% CER. Two-drug regimen sales £186 million
Shingrix sales £647 million +81% AER, +79% CER
Total Group operating margin 22.2%. Adjusted Group operating margin 29.4%, reflecting strong operating leverage (Pharmaceuticals 26.9%; Vaccines 47.5%; Consumer Healthcare 26.8%)
Total EPS 31.5p +87% AER, +89% CER reflecting good operating performance and an increase in the value of shares in Hindustan Unilever relating to the disposal of Horlicks in India
Adjusted EPS 37.7p +25% AER; +26% CER reflecting operating performance and lower tax rate resulting from
a non-recurring revaluation of deferred tax assets
Q1 net cash flow from operations £965 million. Free cash flow £531 million
19p dividend declared for the quarter
Guidance
Based on current assessment of COVID-19, guidance for 2020 Adjusted EPS maintained; to be updated if needed as more information becomes available
Pipeline highlights
Zejula submission accepted by FDA and EMA in first-line maintenance treatment for women with ovarian cancer
Belantamab mafodotin granted FDA priority review for patients with relapsed or refractory multiple myeloma based on data from the pivotal DREAMM-2 study. PDUFA date set for August 2020
Cabenuva, first long-acting regimen for HIV, approved in Canada. Expect submission of reply to FDA Complete Response Letter mid-year
Fostemsavir submitted for approval to EMA for the treatment of HIV in adults
Multiple collaborations underway to develop adjuvanted vaccines for use against COVID-19, including with Sanofi
Agreement with Vir Biotechnology to research and develop solutions for coronaviruses, including using their monoclonal antibody platform technology
Emma Walmsley, Chief Executive Officer, GSK said:
"Responding to the COVID-19 pandemic is at the heart of our purpose as a company and GSK’s portfolio is both highly relevant and needed. We have mobilised efforts across the company and I want to thank all the GSK teams for their outstanding work to make sure our vital medicines, vaccines and everyday health products continue to be available to the people who need them. We have also taken action to deploy our science and technologies. Our primary aim is to develop multiple adjuvanted COVID-19 vaccines, and we are working with companies and institutions across the world to do so.
"Our business performed strongly in the quarter with growth in sales and earnings reflecting good underlying performance and increased demand, including stock-building, for many of our products. Looking ahead, we clearly face a period of considerable uncertainty, but we remain confident in the resilience and sustainability of GSK’s business and our ability to deliver on our long-term priorities of Innovation, Performance and Trust."