UNITED KINGDOM —GSK has posted robust quarterly earnings that beat expectations on the back of sales of its shingles vaccine and said it was upbeat this year despite a decline in turnover from coronavirus-related products.
GSK’s fourth-quarter vaccine sales gained 7% at constant exchange rates (CER), driven by the recovery in Shingrix sales.
Shingrix sales rose 18% at CER during the quarter due to strong demand in Europe and International markets.
In Meningitis vaccines, Bexsero sales were up 13%, while sales of Menveo rose 50%. Sales of the influenza vaccine, Fluarix, were up 2% at CER. Sales of Established vaccines were up 4% year over year.
Quarterly revenues increased 4% on a reported basis but fell 3% at CER to US$8.7 billion (£7.4 billion). The increase in sales across all business segments more than offset the decline in sales of its COVID-19 antibody drug, Xevudy.
Life sciences companies have complained about a planned increase in UK clawback payments for branded drug procurement, with two US drugmakers withdrawing from the scheme entirely. GSK is still a participant in the scheme.
Segment discussion
Sales of the Specialty Medicines segment fell 11% at CER due to the declining sales of Xevudy. Revenues from the Specialty Medicines segment were up 21% at CER, excluding Xevudy sales. Sales growth of HIV, oncology, and respiratory drugs was also strong.
Xevudy generated sales of £125 million (US$150.7 million) in the fourth quarter, compared with £411 million (US$495.4 million) in the third quarter.
The majority of the drug’s sales were generated from International markets. GSK markets Xevudy in collaboration with Vir Biotechnology.
Last April, the FDA withdrew the emergency use authorization (EUA) granted to GSK/Vir Biotechnology’s Xevudy.
The withdrawal decision for the Vir Biotechnology-partnered antibody therapy was based on data that showed that it was unlikely for the Xevudy dose to be effective against the Omicron variant.
HIV sales increased 21% at CER, driven by sales growth of new HIV drugs — Juluca, Dovato, Cabenuva, Rukobia, and Apretude — and a favorable pricing mix in the United States.
Management also witnessed growth of three-drug regimen HIV drugs — Tivicay and Triumeq — whose combined sales were up 15% at CER. It is worth mentioning that GSK markets Juluca in collaboration with J&J.
GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising three-drug regimens — Triumeq and Tivicay — and two-drug regimens — Dovato and J&J-partnered Juluca.
The launch of the two-drug regimens has been eroding sales and market share of the three-drug regimens following their launch.
During the fourth quarter, GSK and J&J’s Juluca and Dovato generated nearly 37.5% of total HIV sales, up from 35% in third-quarter 2022.
Sales of the dolutegravir franchise were up 16% at CER in the U.S. market and 3% in Europe. In International markets, sales were down 21% at CER.
Sales of Triumeq declined 8% at CER, while Tivicay sales were up 5% at CER. The combined sales of Dovato, J&J-partnered Juluca, Rukobia, Cabenuva and Apretude gained 70% at CER.
Sales of the immuno-inflammation drug, Benlysta, were up 20% in the quarter, reflecting growth across all regions.
Sales of the respiratory drug, Nucala, were up 18% at CER during the quarter, driven by growth in all markets.
Oncology sales were up 11% year over year, mainly driven by Zejula. Sales of Zejula rose 8% in the quarter.
Sales of the drug, Blenrep, gained 14% during the quarter. The recently-launched Jemperli added £5 million to the top line in the fourth quarter.
Sales of General Medicines were in line with the year-ago quarter. Loss of sales from established drugs due to generic competition was offset by the strong sales growth of respiratory drugs Trelegy Ellipta and Flixotide/Flovent and the post-pandemic recovery of Augmentin sales.
A few established drugs like Avamys and Ventolin also demonstrated sales growth.
Trelegy Ellipta sales surged 19% year over year, driven by strong growth in all regions. Sales of Anoro Ellipta were up 5% at CER during the fourth quarter.
Key established drugs Advair/Seretide sales declined 6% year over year due to generic competition in all markets. Sales on Revlar/Breo Ellipta were down 15% at CER year over year.
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